RSPE ETF — Holdings & Analysis

The Invesco ESG S&P 500 Equal Weight ETF (RSPE) is an equity ETF with $0.05 billion in assets under management and an expense ratio of 0.20%. RSPE aims to track the S&P 500 Equal Weight Scored & Screened Leaders Select Index, focusing on companies with strong environmental, social, and governance (ESG) practices while maintaining similar industry group weights as the S&P 500 Equal Weight Index. RSPE offers investors exposure to leading ESG companies within the S&P 500, rebalanced quarterly.

The Invesco ESG S&P 500 Equal Weight ETF (Fund) is based on the S&P 500 Equal Weight Scored & Screened Leaders Select Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index is designed to measure the equal weighted performance of securities included in the S&P 500 Equal Weight Index that also meet an environmental, social and governance (“ESG”) criteria, while maintaining similar overall industry group weights as the S&P 500 Equal Weight Index. Each security is given an “ESG score” that seeks to identify companies well-equipped to recognize and respond to emerging sustainability opportunities and challenges in the global market. Industry-specific questionnaires are used to analyze companies’ custom industries derived from Global Industry Classification Standard (“GICSS&P 500”). Companies provide up to 1,000 data points in response to the questionnaires which is used to score each company’s performance in relation to each specific ESG subject. If a company chooses not to actively participate in the assessment, it may be assessed based on publicly available information. Companies are ranked from highest to lowest according to their ESG scores, and the top 40% of constituents within each GICS S&P 500 industry group generally are included in the Index. The Fund and the Index are rebalanced quarterly. Effective after close of business February 10, 2025, the S&P 500 Equal Weight ESG Leaders Select Index changed its name to the S&P 500 Equal Weight Scored & Screened Leaders Select Index. The underlying index and methodology remains the same.

RSPE seeks to replicate the performance of the S&P 500 Equal Weight Scored & Screened Leaders Select Index. This index selects companies from the S&P 500 Equal Weight Index that meet specific ESG criteria. The fund invests at least 90% of its total assets in securities that comprise the Index. The ESG scoring process involves analyzing companies based on industry-specific questionnaires, assessing their performance on various ESG subjects. The top 40% of constituents within each GICS S&P 500 industry group, based on ESG scores, are included in the Index. The fund's equal-weighting approach differentiates it from market-cap-weighted ESG ETFs, potentially offering diversification benefits. Top holdings include Moderna Inc (0.96%), Corning Inc (0.83%), and Micron Technology Inc (0.82%). Sector allocations are diverse, with significant exposure to Industrials (16.9%), Technology (15.6%), and Financial Services (14.4%). This ETF may appeal to investors seeking ESG-focused equity exposure with an equal-weighted approach.

RSPE, with a beta of 0.97, exhibits market sensitivity slightly below the overall market. The fund's equal-weighting strategy, while promoting diversification, can lead to higher turnover and potential tax implications. Sector concentration is present, with Industrials, Technology, and Financial Services comprising a significant portion of the portfolio. The expense ratio of 0.20% will create a slight drag on performance over time. Country exposure is heavily concentrated in the United States (94.4%), limiting geographic diversification. these may be worth researching factors when assessing the risk profile of RSPE. Past performance does not guarantee future results.

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