Investment Education

If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS), a passively managed exchange traded fund launched on 11/01/2006.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $308.25 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RSPS seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX before fees and expenses.

The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 2.22%.

Sector Exposure and Top Holdings

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 in the Consumer Staples sector--about 100% of the portfolio.

Looking at individual holdings, Estee Lauder Cos Inc/the (EL) accounts for about 3.04% of total assets, followed by Lamb Weston Holdings Inc (LW) and Molson Coors Beverage Co (TAP).

The top 10 holdings account for about 27.61% of total assets under management.

Performance and Risk

So far this year, RSPS has added roughly 0.24%, and was up about 6.10% in the last one year (as of 11/15/2024). During this past 52-week period, the fund has traded between $29.93 and $32.93.

The ETF has a beta of 0.59 and standard deviation of 13.48% for the trailing three-year period. With about 40 holdings, it has more concentrated exposure than peers.