Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD)

ETF Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD)

Profile

Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD) is an exchange-traded fund that tracks the S&P 500® Equal Weight Consumer Discretionary Index. This index holds all the companies classified under the Consumer Discretionary sector of the S&P 500, but unlike the standard S&P 500, it weights each company equally, regardless of its market capitalization. This means that smaller companies have a greater impact on the index's performance than they would in a market-cap-weighted index.

Objective

The primary investment goal of RCD is to provide investment results that, before fees and expenses, generally correspond to the total return performance of the S&P 500® Equal Weight Consumer Discretionary Index.

Issuer

Invesco

• Invesco is a global investment management company with over $1.4 trillion in assets under management.
• They have a strong reputation in the market and are known for their innovative and diversified investment strategies.
• The management team of Invesco has extensive experience in managing exchange-traded funds.

Market Share

RCD has a market share of approximately 1.5% in the Consumer Discretionary ETF sector.

Total Net Assets

As of November 10, 2023, RCD has approximately $1.2 billion in total net assets.

Moat

RCD's competitive advantage lies in its unique investment strategy of equal weighting. This strategy helps to reduce the impact of large-cap companies on the portfolio and provides exposure to a broader range of companies within the Consumer Discretionary sector.

Financial Performance

Historical Performance:

• Since its inception in 2006, RCD has delivered an annualized return of approximately 11.5%.
• The ETF has outperformed the S&P 500 Consumer Discretionary Index by an average of 1.5% per year over the same period.

Benchmark Comparison:

• RCD has consistently outperformed the S&P 500 Consumer Discretionary Index over the long term.
• However, it is important to note that past performance is not indicative of future results.

Growth Trajectory

The Consumer Discretionary sector is expected to grow at a healthy pace in the coming years, driven by factors such as rising consumer confidence and increasing disposable income. This bodes well for the future growth of RCD.

Liquidity

Average Trading Volume: Approximately 100,000 shares per day. Bid-Ask Spread: The average bid-ask spread for RCD is around 0.05%.

Market Dynamics

Economic Indicators: Economic indicators such as GDP growth, consumer confidence, and disposable income can significantly impact the performance of RCD. Sector Growth Prospects: The outlook for the Consumer Discretionary sector is positive, with strong growth potential in the coming years. Current Market Conditions: The current market environment is characterized by rising interest rates and inflation, which could impact the performance of RCD in the short term.

Competitors

• Consumer Discretionary Select Sector SPDR Fund (XLY) - Market Share: 85%
• Vanguard Consumer Discretionary ETF (VCR) - Market Share: 6%
• iShares US Consumer Discretionary ETF (IYC) - Market Share: 4%

Expense Ratio

The expense ratio of RCD is 0.4%.

Investment Approach and Strategy

Strategy: RCD tracks the S&P 500® Equal Weight Consumer Discretionary Index. Composition: The ETF holds all the companies included in the S&P 500® Equal Weight Consumer Discretionary Index.

Key Points

• RCD provides exposure to the Consumer Discretionary sector with a focus on equal weighting.
• The ETF has a strong track record of outperforming the S&P 500 Consumer Discretionary Index.
• RCD has a low expense ratio and is highly liquid.

Risks

Volatility: RCD is subject to market volatility, which can lead to significant fluctuations in its price. Market Risk: The performance of RCD is directly tied to the performance of the Consumer Discretionary sector, which can be affected by various factors such as economic conditions and consumer sentiment.

Who Should Consider Investing

RCD is suitable for investors who:

• Seek exposure to the Consumer Discretionary sector.
• Prefer an equal-weighted approach to investing.
• Have a long-term investment horizon.
• Are comfortable with a moderate level of risk.

Fundamental Rating Based on AI

Rating: 8/10

Analysis: RCD has a strong track record of performance, low fees, and good liquidity. The ETF's equal-weighting strategy provides diversification and reduces the impact of large-cap companies. However, it is important to note that the ETF is subject to market volatility and sector-specific risks.

Resources and Disclaimers

Sources:

• Invesco website
• Morningstar
• ETF.com

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.