A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) debuted on 11/01/2006, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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 & Index
The fund is sponsored by Invesco. It has amassed assets over $818.56 million, making it one of the larger ETFs in the Industrials ETFs. Before fees and expenses, RSPN seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX .
The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
RSPN's 12-month trailing dividend yield is 0.89%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For RSPN, it has heaviest allocation in the Industrials sector --about 100% of the portfolio.
Looking at individual holdings, Generac Holdings Inc (GNRC) accounts for about 1.42% of total assets, followed by Southwest Airlines Co (LUV) and Johnson Controls International Plc (JCI).
RSPN's top 10 holdings account for about 13.21% of its total assets under management.
Performance and Risk
The ETF has gained about 7.71% and it's up approximately 9.58% so far this year and in the past one year (as of 11/02/2026), respectively. RSPN has traded between $53.47 and $65.10 during this last 52-week period.
The fund has a beta of 1.00 and standard deviation of 16.52% for the trailing three-year period. With about 86 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight Industrials ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $8.32 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.81 billion. AIRR has an expense ratio of 0.69% and XLI 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 Industrials ETFs
Bottom Line
To 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.
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Invesco S&P 500 Equal Weight Industrials ETF (RSPN): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
