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

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $368.10 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RSPS seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX before fees and expenses.

The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 3%.

Sector Exposure and Top Holdings

ETFs offer a 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.

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

Looking at individual holdings, Costco Wholesale Corp (COST) accounts for about 3.24% of total assets, followed by Keurig Dr Pepper Inc (KDP) and Kimberly-Clark Corp (KMB).

The top 10 holdings account for about 30.26% of total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 Equal Weight Consumer Staples ETF has lost about -1.37% so far, and is down about -6.70% over the last 12 months (as of 07/08/2024). RSPS has traded between $28.40 and $34.27 in this past 52-week period.

The ETF has a beta of 0.58 and standard deviation of 13.48% for the trailing three-year period. With about 39 holdings, it has more concentrated exposure than peers.

Alternatives

Invesco S&P 500 Equal Weight Consumer Staples 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, RSPS is a good option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Consumer Staples ETF (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.60 billion in assets, Consumer Staples Select Sector SPDR ETF has $15.86 billion. VDC has an expense ratio of 0.10% and XLP 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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Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports

Vanguard Consumer Staples ETF (VDC): ETF Research Reports

Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.