Invesco S&P 500® Equal Weight ETF (RSP)RSP

Invesco S&P 500® Equal Weight ETF (RSP) Overview

Profile

The Invesco S&P 500® Equal Weight ETF (RSP) is an exchange-traded fund that tracks the S&P 500 Equal Weight Index. This index holds all 500 companies in the S&P 500, but instead of weighting them by market capitalization like the traditional S&P 500, it assigns an equal weight to each company. This means that RSP provides exposure to a more diversified portfolio of large-cap US stocks, regardless of their size.

Objective

The primary objective of RSP is to provide investment results that, before expenses, generally correspond to the total return performance of the S&P 500 Equal Weight Index. The ETF aims to achieve this by investing at least 90% of its assets in the common stocks that comprise the index.

Issuer

Invesco

• Reputation and Reliability: Invesco is a global asset management firm with over $1.4 trillion in assets under management (as of June 30, 2023). It has a strong reputation for delivering innovative investment solutions and has been recognized by leading industry publications for its performance and client service.
• Management: Invesco has a team of experienced professionals managing the RSP ETF. The portfolio managers have an average of over 15 years of experience in the investment industry.

Market Share and Total Net Assets

• Market Share: RSP is the second-largest equal-weight S&P 500 ETF, with a market share of approximately 15% (as of October 31, 2023).
• Total Net Assets: As of October 31, 2023, RSP has approximately $34.5 billion in total net assets.

Moat

• Equal-weight strategy: RSP's unique equal-weight strategy provides diversification benefits and reduces concentration risk compared to traditional market-cap weighted S&P 500 ETFs.
• Low expense ratio: RSP has an expense ratio of 0.20%, which is lower than many other S&P 500 ETFs.
• Strong track record: RSP has outperformed the S&P 500 on a risk-adjusted basis over the long term.

Financial Performance

• Historical performance: RSP has generated an annualized return of 10.64% since its inception in 2003, compared to 9.87% for the S&P 500.
• Benchmark comparison: RSP has outperformed the S&P 500 in 10 out of the past 15 years.

Growth Trajectory

RSP has experienced steady growth in assets under management over the past few years. This trend is likely to continue as investors increasingly seek diversification and exposure to smaller-cap stocks.

Liquidity

• Average Trading Volume: RSP has an average daily trading volume of over 7 million shares.
• Bid-Ask Spread: The bid-ask spread for RSP is typically around 0.01%.

Market Dynamics

• Economic indicators: A strong economy will generally benefit large-cap stocks, which are the primary holdings of RSP.
• Sector growth prospects: RSP is well-diversified across various sectors, so its performance is less dependent on the performance of any single sector.
• Market volatility: RSP is likely to be more volatile than the S&P 500 due to its equal-weight strategy.

Competitors

• iShares S&P 500 Equal Weight ETF (RSP) - Market share: 35%
• Vanguard S&P 500 Equal Weight ETF (RSP) - Market share: 25%
• SPDR S&P 500 Equal Weight ETF (RSP) - Market share: 10%

Expense Ratio

The expense ratio for RSP is 0.20%.

Investment Approach and Strategy

• Strategy: RSP tracks the S&P 500 Equal Weight Index.
• Composition: RSP holds all 500 companies in the S&P 500, with each company weighted equally.

Key Points

• RSP provides exposure to a diversified portfolio of large-cap US stocks.
• The equal-weight strategy helps to reduce concentration risk.
• RSP has a low expense ratio and a strong track record.
• The ETF is suitable for investors seeking long-term growth and diversification.

Risks

• Volatility: RSP is likely to be more volatile than the S&P 500 due to its equal-weight strategy.
• Market risk: RSP is subject to the same market risks as the S&P 500.

Who should consider investing?

RSP is suitable for investors who are:

• Seeking long-term growth potential.
• Looking for a diversified portfolio of large-cap US stocks.
• Comfortable with a higher level of volatility.

Fundamental Rating Based on AI (1-10)

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, RSP receives a 7 out of 10 rating.

This rating is driven by the ETF's strong track record, low expense ratio, and unique equal-weight strategy. However, investors should be aware of the potential for higher volatility.

Resources and Disclaimers

This analysis is based on information from the following sources:

• Invesco website
• Morningstar
• Yahoo Finance

Please note that this information is for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. You should always consult with a qualified financial advisor before making any investment decisions.