Is Invesco S&P 500 Quality ETF (SPHQ) a Strong ETF Right Now?
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 500 Equal Weight ETF (RSP) is a passively managed exchange traded fund launched on 04/24/2003.
The fund is sponsored by Invesco. It has amassed assets over $72.56 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Investors should also pay attention to an ETF’s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.74%.
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector–about 16.10% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Palantir Technologies Inc (PLTR) accounts for about 0.38% of total assets, followed by United Airlines Holdings Inc (UAL) and Vistra Corp (VST).
The top 10 holdings account for about 3.08% of total assets under management.
RSP seeks to match the performance of the S&P 500 Equal Weight Index before fees and expenses. The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.
The ETF return is roughly 0.34% so far this year and is up about 12.54% in the last one year (as of 01/09/2025). In the past 52-week period, it has traded between $153.84 and $187.62.
The ETF has a beta of 1.06 and standard deviation of 16.67% for the trailing three-year period. With about 504 holdings, it effectively diversifies company-specific risk.
Invesco S&P 500 Equal Weight ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSP is a great option for investors seeking exposure to the Style Box – Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
