Should You Invest in the Invesco S&P 500 Equal Weight Technology ETF (RYT)?
Sector ETF report for RYT
Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Technology ETF (RYT) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
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 are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
The fund is sponsored by Invesco. It has amassed assets over $2.87 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RYT seeks to match the performance of the S&P 500 Equal Weight Information Technology Index before fees and expenses.
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.40%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Enphase Energy Inc (ENPH) accounts for about 1.92% of total assets, followed by Arista Networks Inc (ANET) and Salesforce.com Inc (CRM).
The top 10 holdings account for about 15.52% of total assets under management.
Performance and Risk
The ETF has lost about -3.39% so far this year and was up about 21.78% in the last one year (as of 01/13/2022). In that past 52-week period, it has traded between $250.01 and $327.55.
The ETF has a beta of 1.11 and standard deviation of 26.76% for the trailing three-year period, making it a medium risk choice in the space. With about 77 holdings, it effectively diversifies company-specific risk.
Invesco S&P 500 Equal Weight Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RYT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $51.03 billion in assets, Vanguard Information Technology ETF has $54.40 billion. XLK has an expense ratio of 0.12% and VGT charges 0.10%.
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 Technology ETF (RYT): ETF Research Reports
salesforce.com, inc. (CRM): Free Stock Analysis Report
Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Vanguard Information Technology ETF (VGT): ETF Research Reports
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