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RSPM - ETF AI Analysis

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RSPM

Invesco S&P 500 Equal Weight Materials ETF (RSPM)

Rating:66Neutral
Price Target:
RSPM, the Invesco S&P 500 Equal Weight Materials ETF, has a solid but not top-tier rating, suggesting a generally sound fund with some notable strengths and a few clear weaknesses. Strong contributors like Corteva, CF Industries, Amcor, and Packaging Corp of America support the fund through robust financial performance, strategic growth initiatives, and attractive dividends, while holdings such as International Paper, Air Products, and Ball Corporation face profitability, cash flow, and bearish technical challenges that weigh on the overall assessment. The main risk is that many holdings share bearish technical trends and sector-specific headwinds, which can increase volatility within this concentrated materials-focused ETF.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, suggesting its equal-weight materials approach has recently worked in investors’ favor.
Multiple Strong-Performing Holdings
Several top holdings, including companies like Corteva, Ball, CF Industries, and Air Products and Chemicals, have shown strong or steady performance, helping support the fund’s overall returns.
Balanced Exposure Across Top Positions
The largest holdings each make up a similar share of the portfolio, which helps avoid relying too heavily on any single stock.
Negative Factors
Recent Short-Term Weakness
The ETF has shown weak performance over the last three months, indicating some recent pressure on the materials and related holdings.
Underperforming Top Holdings
Some key positions, such as International Paper, Mosaic, and Sherwin-Williams, have lagged, which can drag on the fund’s overall results.
High Concentration in U.S. Materials and Consumer Cyclical Stocks
With almost all assets in U.S. companies and heavy exposure to the materials and consumer cyclical sectors, the fund is sensitive to downturns in these specific areas of the economy.

RSPM vs. SPDR S&P 500 ETF (SPY)

RSPM Summary

RSPM is the Invesco S&P 500 Equal Weight Materials ETF, which follows a materials-focused version of the S&P 500 index. It invests in U.S. companies that make chemicals, packaging, construction materials, and paper products. Well-known holdings include Sherwin-Williams and International Paper. Because each company is given roughly the same weight, you’re not overly dependent on a few giants, which can help with diversification and give smaller firms a chance to contribute to returns. A key risk is that it is heavily tied to the materials sector, so its value can rise or fall sharply with economic cycles and commodity prices.
How much will it cost me?The Invesco S&P 500 Equal Weight Materials ETF (RSPM) has an expense ratio of 0.40%, which means you’ll pay $4 per year for every $1,000 invested. This is slightly higher than average for ETFs because it uses an equal-weight strategy, which requires more active management compared to passively managed funds. It’s a reasonable cost for investors seeking targeted exposure to the materials sector with balanced diversification.
What would affect this ETF?The Invesco S&P 500 Equal Weight Materials ETF (RSPM) could benefit from increased demand for materials driven by infrastructure spending, construction growth, or advancements in green technologies, which often rely on metals and chemicals. However, it may face challenges from rising interest rates, which can increase borrowing costs for companies in the sector, or economic slowdowns that reduce demand for raw materials. Its focus on U.S.-based companies and equal weighting provides diversification but may limit exposure to faster-growing international markets.

RSPM Top 10 Holdings

RSPM is very much a U.S. materials story, with a clear tilt toward packaging, chemicals, and fertilizers rather than flashy tech. CF Industries has been one of the fund’s key engines, rising on strong fundamentals and helping lift overall returns, while Corteva and Air Products are also pulling their weight with steady to rising momentum. On the flip side, Mosaic is dragging the fund a bit as its performance has lagged, and Ecolab looks a bit tired. With equal weights, no single name dominates, but the sector bet is unmistakably materials-heavy.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
International Paper Co4.93%$8.85M$21.62B-10.01%
49
Neutral
Amcor4.57%$8.19M$20.75B-2.08%
73
Outperform
Smurfit Westrock4.56%$8.18M$24.03B6.40%
69
Neutral
Ball4.51%$8.09M$17.28B13.09%
59
Neutral
Sherwin-Williams Company4.41%$7.92M$82.74B1.83%
66
Neutral
Packaging4.39%$7.88M$21.90B30.04%
76
Outperform
Avery Dennison4.18%$7.50M$12.98B2.94%
73
Outperform
Mosaic Co4.17%$7.48M$7.03B-38.60%
65
Neutral
Ecolab4.12%$7.39M$78.14B5.73%
66
Neutral
International Flavors & Fragrances4.11%$7.38M$20.23B14.87%
61
Neutral

RSPM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
38.94
Positive
100DMA
38.77
Positive
200DMA
36.95
Positive
Market Momentum
MACD
0.32
Negative
RSI
61.88
Neutral
STOCH
76.37
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RSPM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 39.01, equal to the 50-day MA of 38.94, and equal to the 200-day MA of 36.95, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 76.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSPM.

RSPM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$182.79M0.40%
66
Neutral
$874.29M0.48%
70
Outperform
$837.91M0.61%
67
Neutral
$766.88M0.40%
71
Outperform
$592.67M0.08%
68
Neutral
$374.60M0.64%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RSPM
Invesco S&P 500 Equal Weight Materials ETF
40.48
9.31
29.87%
REZ
iShares Residential and Multisector Real Estate ETF
FXU
First Trust Utilities AlphaDEX Fund
RSPH
Invesco S&P 500 Equal Weight Health Care ETF
FMAT
Fidelity MSCI Materials Index ETF
FXZ
First Trust Materials AlphaDEX Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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