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

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $311.18 million, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the equity market. RSPF seeks to match the performance of the S&P 500 EQUAL WEIGHT FINANCIALS INDEX before fees and expenses.

The S&P 500 Equal Weight Financials Index equally weights stocks in the financial sector of the S&P 500 Index.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

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 1.22%.

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 Financials sector--about 100% of the portfolio.

Looking at individual holdings, Paypal Holdings Inc (PYPL) accounts for about 1.52% of total assets, followed by Invesco Ltd (IVZ) and Ameriprise Financial Inc (AMP).

The top 10 holdings account for about 14.82% of total assets under management.

Performance and Risk

So far this year, RSPF has added about 29.92%, and is up roughly 48.02% in the last one year (as of 11/13/2024). During this past 52-week period, the fund has traded between $52.86 and $75.65.

The ETF has a beta of 1.05 and standard deviation of 14.56% for the trailing three-year period. With about 73 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Equal Weight Financials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPF is a sufficient option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $11.27 billion in assets, Financial Select Sector SPDR ETF has $48.37 billion. VFH has an expense ratio of 0.10% and XLF charges 0.09%.

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 Financials ETF (RSPF): ETF Research Reports

Invesco Ltd. (IVZ) : Free Stock Analysis Report

Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report

Financial Select Sector SPDR ETF (XLF): ETF Research Reports

PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

Vanguard Financials ETF (VFH): ETF Research Reports

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