Should You Invest in the Invesco S&P 500 Equal Weight Materials ETF (RSPM)?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Invesco S&P 500 Equal Weight Materials ETF (RSPM):
- Launched on 11/01/2006, this passively managed ETF provides exposure to the Materials - Broad segment of the equity market.
- Offers low costs, transparency, flexibility, and tax efficiency for both retail and institutional investors.
- Sponsored by Invesco, the fund has assets over $267.38 million and seeks to match the performance of the S&P 500 EQUAL WEIGHT MATERIALS INDEX.
- The ETF has a 12-month trailing dividend yield of 2% and a 0.40% annual operating expense ratio.
- It is heavily allocated in the Materials sector, with top holdings including International Paper Co (IP), Newmont Corp (NEM), and International Flavors & Fragrances Inc (IFF).
Performance and Risk:
- The ETF has gained about 1.32% year-to-date and 6.95% in the last year, with a beta of 1.10 and standard deviation of 20.01%.
- With around 29 holdings, it has more concentrated exposure compared to peers.
Alternatives:
- Investors can consider other ETF options like Materials Select Sector SPDR ETF (XLB) and FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR).
- XLB tracks the Materials Select Sector Index, while GUNR tracks the Morningstar Global Upstream Natural Resources Index.
- XLB has $5.39 billion in assets with an expense ratio of 0.09%, and GUNR has $5.82 billion with a 0.46% expense ratio.
Bottom Line:
- Invesco S&P 500 Equal Weight Materials ETF (RSPM) is ranked 3 (Hold) by Zacks and offers exposure to the Materials ETFs area of the market.
- Investors are encouraged to explore products that align with their investment objectives and stay updated on ETF investing developments through resources like Zacks ETF Center.
Analyst Views on IP
Wall Street analysts forecast IP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IP is 48.35 USD with a low forecast of 36.00 USD and a high forecast of 57.80 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 42.790
Low
36.00
Averages
48.35
High
57.80
Current: 42.790
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company provides sustainable packaging solutions. The Company is a global producer of renewable fiber-based packaging products. Its segments include Packaging Solutions North America and Packaging Solutions EMEA. Packaging Solutions North America and Packaging Solutions EMEA segments are primarily focused on producing fiber-based packaging. It produces linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of its production is converted into corrugated packaging and other packaging. The Company’s recycling solutions and services manage fiber recovery programs for retailers, grocers, e-commerce, distribution centers, manufacturers, and its own box plants by managing recovered fiber streams used in packaging production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
