Should you invest in the Invesco S&P 500 Equal Weight Industrials (RGI) ETF?
LLaunched on 01/11/2006, the Invesco S&P 500 Equal Weight Industrials (RGI) ETF is a passively managed listed index fund designed to provide broad exposure to the Industrials – Broad segment of the equity market.
Although they are 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.
Additionally, sector ETFs offer convenient ways to gain low-risk, diversified exposure to a broad group of companies in particular sectors. Industry – Large is one of 16 major Zacks sectors within the Zacks Industry classification. He is currently ranked 6, which puts him in the top 38%.
The fund is sponsored by Invesco. It has amassed assets of over $434.03 million, making it one of the mid-sized ETFs attempting to match the performance of the Industrial – Large segment of the stock market. RGI 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 industrial sector of the S&P 500 Index.
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.
The annual operating expense of this ETF is 0.40%, making it one of the cheapest products on the market.
It has a 12-month dividend yield of 0.76%.
Sector exposure and main holdings
It is important to delve into the holdings of an ETF before investing despite the many advantages of these types of funds such as diversified exposure, which minimizes the risk of a single stock. And most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has the largest allocation in the industrials sector, approximately 100% of the portfolio.
Looking at individual holdings, Lockheed Martin Corp (LMT) accounts for around 1.98% of total assets, followed by Northrop Grumman Corp (NOC) and L3harris Technologies Inc (LHX).
The top 10 holdings represent approximately 17.64% of total assets under management.
Performance and risks
So far this year, RGI has lost around -4.59%, and it has risen around 3.22% over the past year (as of 04/20/2022). During this last 52-week period, the fund traded between $175.67 and $200.30.
The ETF has a beta of 1.21 and a standard deviation of 26.34% for the three-year period, making it a medium-risk pick in the space. With approximately 75 holdings, it effectively diversifies company-specific risks.
Invesco S&P 500 Equal Weight Industrials ETF has a Zacks ETF rating of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RGI is a good option for those seeking exposure to the industrial ETF sector of the market. Investors could also consider other ETF options in the space.
The Vanguard Industrials ETF (VIS) tracks the MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks the Industrial Select Sector Index. Vanguard Industrials ETF has $4.67 billion in assets, Industrial Select Sector SPDR ETF has $15.19 billion. VIS has a spend rate of 0.10% and XLI charges 0.10%.
To learn more about this product and other ETFs, find products that fit your investment goals, and read articles about the latest developments in the ETF investment universe, please visit Zacks ETF Center.
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Invesco S&P 500 Equal Weight Industrials ETF (RGI): ETF Research Reports
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Vanguard Industrials ETF (VIS): ETF Research Reports
ETF SPDR selected industrial sector (XLI): ETF research reports
L3Harris Technologies Inc (LHX): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.