Is Invesco S&P 500 Equal Weight Energy ETF (RSPG) a Strong ETF Right Now?

Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Energy ETF (RSPG) provides investors broad exposure to the Energy ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

Managed by Invesco, RSPG has amassed assets over $650.86 million, making it one of the larger ETFs in the Energy ETFs. RSPG seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX before fees and expenses.

The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy sector of the S&P 500 Index.

Cost & Other Expenses

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.

It's 12-month trailing dividend yield comes in at 1.87%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Energy sector - about 100% of the portfolio.

Looking at individual holdings, Texas Pacific Land Corp (TPL) accounts for about 6.51% of total assets, followed by Occidental Petroleum Corp (OXY) and Valero Energy Corp (VLO).

The top 10 holdings account for about 48.71% of total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 Equal Weight Energy ETF has added roughly 39.82% so far, and it's up approximately 39.36% over the last 12 months (as of 03/31/2026). RSPG has traded between $65.43 $112.74 in this past 52-week period.

The fund has a beta of 0.60 and standard deviation of 22.38% for the trailing three-year period. With about 25 holdings, it has more concentrated exposure than peers .

Alternatives

Invesco S&P 500 Equal Weight Energy ETF is a reasonable option for investors seeking to outperform the Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Energy Index Fund ETF Shares (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the State Street Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy Index Fund ETF Shares has $10.25 billion in assets, State Street Energy Select Sector SPDR ETF has $43.01 billion. VDE has an expense ratio of 0.09% and XLE changes 0.08%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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Invesco S&P 500 Equal Weight Energy ETF (RSPG): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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