Designed to provide broad exposure to the Industrials ETFs category of the market, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) is a smart beta exchange traded fund launched on 11/01/2006.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 managed by Invesco. RSPN has been able to amass assets over $1.03 billion, making it one of the larger ETFs in the Industrials ETFs. This particular fund seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX before fees and expenses.
The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials 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 on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
It has a 12-month trailing dividend yield of 0.84%.
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 Industrials sector - about 100% of the portfolio.
When you look at individual holdings, Axon Enterprise Inc (AXON) accounts for about 1.5% of the fund's total assets, followed by Stanley Black & Decker Inc (SWK) and Allegion Plc (ALLE).
The top 10 holdings account for about 13.97% of total assets under management.
Performance and Risk
So far this year, RSPN return is roughly 9.21%, and was up about 11.11% in the last one year (as of 09/01/2026). During this past 52-week period, the fund has traded between $53.47 and $65.10.
The fund has a beta of 1.00 and standard deviation of 16.66% for the trailing three-year period. With about 86 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight Industrials ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $9.44 billion in assets, State Street Industrial Select Sector SPDR ETF has $32.21 billion. AIRR has an expense ratio of 0.69% and XLI 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 Industrials 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 Industrials ETF (RSPN): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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