Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Financials ETF (RSPF) is a smart beta exchange traded fund offering broad exposure to the Financials 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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $316.83 million, making it one of the average sized ETFs in the Financials ETFs. RSPF, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT FINANCIALS INDEX .
The S&P 500 Equal Weight Financials Index equally weights stocks in the financial sector of the S&P 500 Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.13%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For RSPF, it has heaviest allocation in the Financials sector --about 100% of the portfolio.
When you look at individual holdings, Paypal Holdings Inc (PYPL) accounts for about 1.72% of the fund's total assets, followed by Global Payments Inc (GPN) and Willis Towers Watson Plc (WTW).
Its top 10 holdings account for approximately 15.07% of RSPF's total assets under management.
Performance and Risk
The ETF has added about 9.47% and was up about 9.79% so far this year and in the past one year (as of 08/28/2026), respectively. RSPF has traded between $69.04 and $85.68 during this last 52-week period.
The ETF has a beta of 0.85 and standard deviation of 16.64% for the trailing three-year period. With about 78 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight Financials ETF is a reasonable option for investors seeking to outperform the Financials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Financials Index Fund ETF Shares (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the State Street Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials Index Fund ETF Shares has $13.84 billion in assets, State Street Financial Select Sector SPDR ETF has $55.68 billion. VFH has an expense ratio of 0.09% and XLF 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 Financials 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 Financials ETF (RSPF): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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