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

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

Profile:

RHS is an ETF that tracks the S&P 500 Equal Weight Consumer Staples Index. This means it invests in the same 33 consumer staples companies as the S&P 500 Consumer Staples Index, but instead of weighting them by market capitalization, it gives each company an equal weight. This aims to diversify the portfolio and reduce concentration risk.

Objective:

The primary objective of RHS is to provide investment results that, before expenses, generally correspond to the total return performance of the S&P 500 Equal Weight Consumer Staples Index.

Issuer:

Invesco Ltd. is the issuer of RHS.

• Reputation and Reliability: Invesco is a well-established and reputable asset management company with over 80 years of experience. It manages over $1.4 trillion in assets globally.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in the consumer staples sector.

Market Share:

RHS has a market share of approximately 0.4% in the consumer staples ETF sector.

Total Net Assets:

As of November 7, 2023, RHS has total net assets of approximately $990 million.

Moat:

RHS's competitive advantages include:

• Equal-weighting methodology: This reduces concentration risk and provides exposure to a wider range of companies within the consumer staples sector.
• Low expense ratio: The ETF has an expense ratio of 0.39%, which is lower than the average expense ratio for consumer staples ETFs.
• Experienced management team: The ETF is managed by a team of experienced investment professionals with a proven track record.

Financial Performance:

• Historical performance: RHS has delivered a total return of 5.5% over the past year and 10.2% over the past 3 years (as of November 7, 2023).
• Benchmark comparison: RHS has outperformed the S&P 500 Consumer Staples Index over the past year and 3 years.

Growth Trajectory:

The consumer staples sector is expected to grow steadily in the coming years due to the non-cyclical nature of consumer staples products. As a result, RHS is expected to benefit from this growth.

Liquidity:

• Average trading volume: RHS has an average trading volume of approximately 240,000 shares per day.
• Bid-ask spread: The bid-ask spread for RHS is typically around 0.02%.

Market Dynamics:

The performance of RHS is affected by factors such as:

• Economic growth: A strong economy leads to increased consumer spending, which benefits consumer staples companies.
• Interest rates: Rising interest rates can impact consumer spending and, consequently, the performance of consumer staples companies.
• Competition: The consumer staples sector is highly competitive, which can put pressure on profit margins.

Competitors:

• Consumer Staples Select Sector SPDR Fund (XLP): Market share: 80.6%
• Vanguard Consumer Staples ETF (VDC): Market share: 10.7%
• iShares U.S. Consumer Staples ETF (IYK): Market share: 4.9%

Expense Ratio:

The expense ratio for RHS is 0.39%.

Investment Approach and Strategy:

• Strategy: RHS tracks the S&P 500 Equal Weight Consumer Staples Index.
• Composition: The ETF holds the same 33 consumer staples companies as the S&P 500 Consumer Staples Index, with each company weighted equally.

Key Points:

• Invests in a diversified basket of 33 consumer staples companies.
• Equal-weighting methodology reduces concentration risk.
• Low expense ratio compared to peers.
• Outperformed the S&P 500 Consumer Staples Index over the past year and 3 years.

Risks:

• Market risk: The value of RHS can fluctuate with the overall market.
• Sector risk: The consumer staples sector is sensitive to economic conditions.
• Interest rate risk: Rising interest rates can impact consumer spending and, consequently, the performance of consumer staples companies.

Who Should Consider Investing:

• Investors seeking exposure to the consumer staples sector.
• Investors looking for an equal-weighted approach to reduce concentration risk.
• Investors who want a low-cost way to invest in consumer staples companies.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, RHS receives a Fundamental Rating of 7. This indicates that RHS has strong fundamentals and is a potentially attractive investment for investors seeking exposure to the consumer staples sector.

Resources and Disclaimers:

• Invesco S&P 500 Equal Weight Consumer Staples ETF website: 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

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.