Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS)RSPS

Invesco S&P 500® Equal Weight Consumer Staples ETF (RHS)

Profile: Invesco S&P 500® Equal Weight Consumer Staples ETF (RHS) is an exchange-traded fund (ETF) that tracks the S&P 500® Equal Weight Consumer Staples Index. This index holds all the stocks in the S&P 500 Consumer Staples sector, but instead of weighting them by market capitalization, it gives each company an equal weight. This means that smaller companies have a larger impact on the index than they would in a traditional market-cap weighted index.

Objective: The primary objective of RHS is to provide investment results that, before expenses, generally correspond to the price and yield performance of the S&P 500® Equal Weight Consumer Staples Index.

Issuer: The issuer of RHS is Invesco Ltd., a global investment management firm with over $1.4 trillion in assets under management. Invesco has a strong reputation in the market and is known for its innovative and actively managed investment products.

Market Share: RHS is a relatively small ETF with a market share of around 0.5% in the consumer staples sector. However, it is the largest equal-weight consumer staples ETF available.

Total Net Assets: As of November 2023, RHS has total net assets of approximately $220 million.

Moat: The main competitive advantage of RHS is its unique equal-weighting methodology. This approach helps to reduce concentration risk and can potentially lead to better long-term performance than a traditional market-cap weighted index.

Financial Performance: RHS has outperformed the Consumer Staples Select Sector SPDR Fund (XLP), a traditional market-cap weighted ETF, over the past 3 and 5 years. However, it has underperformed XLP over the past 1 year.

Benchmark Comparison: RHS has a beta of 0.95, which means that it is slightly less volatile than the S&P 500 Consumer Staples Index.

Growth Trajectory: The consumer staples sector is expected to grow at a moderate pace over the next few years. This should provide support for the price of RHS.

Liquidity: RHS has an average trading volume of around 25,000 shares per day. This makes it a relatively liquid ETF.

Bid-Ask Spread: The bid-ask spread for RHS is typically around 0.05%. This is a relatively tight spread for an ETF.

Market Dynamics: The main factors affecting the market environment for RHS are economic growth, interest rates, and consumer spending.

Competitors: Key competitors of RHS include:

• Vanguard Consumer Staples ETF (VDC)
• iShares U.S. Consumer Staples ETF (IYK)
• SPDR S&P® Consumer Staples Select Sector ETF (XLP)

Expense Ratio: The expense ratio for RHS is 0.35%. This is a relatively low expense ratio for an actively managed ETF.

Investment Approach and Strategy: RHS uses a passive investment approach, meaning that it tracks the S&P 500® Equal Weight Consumer Staples Index. The ETF holds all the stocks in the index in equal proportions.

Key Points:

• RHS offers exposure to a diversified basket of consumer staples stocks.
• The equal-weighting methodology helps to reduce concentration risk.
• RHS has a low expense ratio.
• The ETF has a strong track record of outperforming its benchmark.

Risks:

• RHS is subject to the risks of investing in the consumer staples sector, such as changes in consumer spending and competition.
• The equal-weighting methodology can lead to higher volatility than a traditional market-cap weighted index.
• RHS is a relatively small ETF, which means that it may be less liquid than larger ETFs.

Who Should Consider Investing:

• Investors who are looking for exposure to the consumer staples sector.
• Investors who want to reduce concentration risk.
• Investors who are comfortable with a higher level of volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of RHS's fundamentals, the ETF receives a rating of 7 out of 10. This rating is based on factors such as financial health, market position, and future prospects. The analysis suggests that RHS is a well-managed ETF with a strong track record of performance. However, it is important to note that past performance is not a guarantee of future results.

Resources:

• Invesco S&P 500® Equal Weight Consumer Staples ETF (RHS): https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-RHS
• S&P 500® Equal Weight Consumer Staples Index: https://us.spindices.com/indices/equity/sp-500-equal-weight-consumer-staples-index
• Invesco: https://www.invesco.com/

Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered as investment advice. Investors should consult with a qualified financial advisor before making any investment decisions.