Is Invesco S&P 500 Equal Weight Utilities ETF (RSPU) a Strong ETF Right Now?

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Utilities ETF (RSPU) is a smart beta exchange traded fund offering broad exposure to the Utilities/Infrastructure ETFs category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $536.85 million, making it one of the average sized ETFs in the Utilities/Infrastructure ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT UTILITIES PLUS INDX.The S&P 500 Equal Weight Utilities Plus Index equally weights the common stocks of all companies included in the S&P 500 Index that are classified as members of the utilities sector.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 3.12%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.RSPU's heaviest allocation is in the Utilities sector, which is about 100% of the portfolio.Taking into account individual holdings, Entergy Corp (ETR) accounts for about 3.48% of the fund's total assets, followed by Nrg Energy Inc (NRG) and Sempra (SRE).Its top 10 holdings account for approximately 33.18% of RSPU's total assets under management.Performance and RiskYear-to-date, the Invesco S&P 500 Equal Weight Utilities ETF has gained about 7.83% so far, and is up roughly 16.65% over the last 12 months (as of 06/23/2026). RSPU has traded between $70.02 $84.43 in this past 52-week period. The fund has a beta of 0.58 and standard deviation of 15.54% for the trailing three-year period. With about 33 holdings, it has more concentrated exposure than peers .AlternativesInvesco S&P 500 Equal Weight Utilities ETF is not a suitable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.Vanguard Utilities Index Fund ETF Shares (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the State Street Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities Index Fund ETF Shares has $8.64 billion in assets, State Street Utilities Select Sector SPDR ETF has $22.73 billion. VPU has an expense ratio of 0.09% and XLU changes 0.08%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Utilities/Infrastructure ETFsBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks