A strong management team and sound investment process underpin Invesco S&P 500® Equal Weight Energy ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy's effective investment approach earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in quality exposure and has an overweight in liquidity exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Williams

Targa Resources

Hess

Chevron

EOG Resources

Kinder Morgan

Exxon Mobil

Diamondback Energy

Devon Energy

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Invesco S&P 500® Equal Weight Energy ETF earns an Above Average Process Pillar rating. 

The main driver of the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 44%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

 This strategy, over time, has opted for smaller market-cap companies, compared with others in the Equity Energy Morningstar Category.  But in terms of investment style, it is on par with peers. Looking at additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Such positions do not tend to provide much ballast for a portfolio. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In the most recent month, however, the fund's Liquidity exposure was in line with the Morningstar Category average. In addition, this strategy's holdings have included more companies with high dividend or buyback yields than peers over these years. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Nevertheless, the fund's Yield exposure was in line with peers in the latest month. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in energy by 12.4 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. The sectors with low exposure compared to category peers are utilities and industrials, with utilities underweighting the average portfolio by 6.8 percentage points of assets and industrials similar to the average. The portfolio is positioned across 25 holdings and is diversified among those holdings. In its most recent portfolio, 44.7% of the strategy's assets were concentrated in the top 10 fund holdings, as opposed to the category’s 51.2% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 20% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

Invesco S&P 500® Equal Weight Energy ETF benefits considerably from its equity team, earning it an Above Average People Pillar rating. There are four managers listed on the fund: Peter Hubbard, Tony Seisser, Michael Jeanette, Pratik Doshi. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of 145 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. This group has been working together for a while and has been successful in retaining talent compared to peers, with no departures in the last five years.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco S&P 500 Equal Weight Energy ETF

RSPG tracks an equal-weighted index of US energy companies in the S&P 500.

Designed to provide broad exposure to the Energy ETFs category of the market, the Invesco S&P 500 Equal Weight Energy ETF (RSPG) is a smart beta exchange traded fund launched on 11/01/2006.

Is Invesco S&P 500 Equal Weight Energy ETF (RSPG) a Strong ETF Right Now?

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Energy ETF (RSPG) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.

Should You Invest in the Invesco S&P 500 Equal Weight Energy ETF (RSPG)?

Alerian MLP ETF

Fidelity MSCI Energy Index ETF

iShares Global Clean Energy ETF

iShares Global Energy ETF

SmartETFs Sustainable Energy II ETF

United States Oil Fund LP

Energy Select Sector SPDR Fund

Oil and gas stocks are off to a hot start in 2024 and these energy ETFs can give investors exposure to the space.

8 Best Energy ETFs to Buy

RSPG: This Energy Fund No Longer Offers An Attractive Entry Point (Rating Downgrade)

Amid ongoing geopolitical tensions, oil prices are trending higher this year and that's positively affecting energy stocks. Year-to-date, the cap-weighted S&P Energy Select Sector index is higher by almost 9%, extending a three-year run in which the gauge has gained about 92%.

Bargains Abound in This Energy ETF

The Invesco S&P 500® Equal Weight Energy ETF is recommended for bullish investors looking for equal-weight exposure to the energy sector. The RSPG ETF holds a diversified portfolio of 24 energy stocks with equal weighting, reducing reliance on any single stock. The fund offers balanced diversification, potential for outperformance, and a dividend yield of around 2.87% in an undervalued energy sector.

RSPG: Could Be The Energy Play Of 2024

For investors seeking momentum, Invesco S&P 500 Equal Weight Energy ETF RSPG is probably on radar. The fund just hit a 52-week high and is up 30.04% from its 52-week low price of $61.95/share.

Energy ETF (RSPG) Hits New 52-Week High

Invesco DB Energy Fund

Invesco DB Oil Fund

Invesco Dynamic Energy Exploration & Production ETF

Crude oil futures are on track for second straight weekly gains, lifting oil and broad energy ETFs. Invesco's four best-performing ETFs over one week all provide exposure to crude oil prices, either via futures contracts or equities.

Invesco's Oil and Energy ETFs Are This Week's Top Performers

The article evaluates the Invesco S&P 500 Equal Weight Energy ETF as an investment option at its current market price. The fund's gains have been similar to those of the S&P 500 as a whole, but I see a continued path for more gains in the energy sector. Economic and geopolitical conditions globally have supported elevated commodity prices, benefiting the oil and energy sector.

RSPG: Energy A Great Hedge For Current Mid-East Conflict

Invesco's energy ETF is rallying as global oil demand reaches record levels. Global oil demand hit a record level in June and could peak again in August, the International Energy Agency said on Friday.

Energy ETF RSPG Lifted by Record Global Oil Demand

This year, energy stocks and the related exchange traded funds aren't delivering the scintillating performances that were seen in 2021 and 2022. But the sector is higher on the year, albeit in a modest fashion.

Oil Services Stocks Could Energize This Energy ETF

Invesco has changed the tickers for its suite of equal-weight sector ETFs, including the Invesco S&P 500 Equal Weight Energy ETF. The fund is an equal weight take on the energy market, and is overweight mid-cap names. The fund holds 23 energy companies with an equal weight of approximately 4.4% of the portfolio and has outperformed XLE in the past year.

RSPG: Equal Weight Energy Fund With A Mid-Cap Tilt

Energy equities and ETFs are incurring punishment on multiple fronts this year. First, growth stocks are back in style and driving the broader market higher, giving investors reason to repudiate slower growth sectors. Second, supply and demand dynamics currently aren't in favor of energy stocks.

News for Invesco S&P 500 Equal Weight Energy ETF ETF (RSPG)