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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 overall rating that reflects a mix of strong leaders and some more challenged holdings in the materials sector. Strong contributors like Nucor and Steel Dynamics support the fund with stable financials, positive earnings commentary, and solid technical momentum, while CF Industries and Freeport-McMoRan add further strength through healthy finances and strategic initiatives. However, weaker names such as Dow and Air Products, which face profitability, cash flow, and bearish technical trends, highlight the main risk: exposure to materials companies that can be sensitive to economic cycles and operational challenges.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past few months, indicating positive recent momentum.
Leading Materials Stocks
Many of the top holdings, such as major steel, chemicals, and commodity producers, have delivered strong year-to-date performance, helping drive the fund’s returns.
Equal-Weight Approach
The fund spreads its holdings more evenly instead of letting a few mega-cap stocks dominate, which can reduce reliance on any single company.
Negative Factors
Sector Concentration in Materials
Most of the portfolio is tied to the materials sector, which can make the ETF more sensitive to swings in commodity prices and industrial demand.
Limited Geographic Diversification
The ETF is heavily invested in U.S. companies with only a small allocation to the UK, offering little exposure to other global markets.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for a passive ETF, which slightly reduces the net return investors keep over time.

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

RSPM Summary

RSPM is the Invesco S&P 500 Equal Weight Materials ETF, which follows the S&P 500 Equal Weighted / Materials index. It focuses on companies in the materials sector, such as chemicals, metals, mining, and construction materials. Well-known holdings include Dow Inc. and Freeport-McMoRan. Because each company is given roughly the same weight, this fund doesn’t rely too heavily on just a few giants and can benefit if smaller players do well. A key risk is that it is concentrated in the materials sector, so it can rise or fall sharply with commodity prices and the economic cycle.
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 steelmakers Nucor and Steel Dynamics doing the heavy lifting as their rising shares help power the fund. Chemical and commodity names like CF Industries and LyondellBasell are also adding some spark, benefiting from steadier sentiment despite underlying business pressures. On the flip side, Albemarle has been a bit of a problem child, with lagging recent performance tempering the fund’s momentum, while Dow and Freeport-McMoRan show more mixed signals. Overall, it’s a sector‑focused, metals‑and‑chemicals engine with no single stock dominating.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nucor4.95%$9.07M$52.84B119.68%
74
Outperform
Steel Dynamics4.67%$8.57M$34.62B94.57%
76
Outperform
Albemarle4.52%$8.30M$20.24B197.14%
58
Neutral
Dow Inc4.24%$7.78M$25.95B21.99%
49
Neutral
International Flavors & Fragrances4.22%$7.74M$19.22B-1.77%
61
Neutral
LyondellBasell4.08%$7.48M$22.50B19.04%
52
Neutral
DuPont de Nemours4.06%$7.45M$19.73B-28.60%
62
Neutral
Air Products and Chemicals4.04%$7.42M$64.46B5.48%
46
Neutral
Cf Industries Holdings4.01%$7.36M$18.70B30.17%
72
Outperform
Freeport-McMoRan3.97%$7.28M$89.11B62.36%
67
Neutral

RSPM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
38.94
Positive
100DMA
38.65
Positive
200DMA
35.68
Positive
Market Momentum
MACD
-0.14
Negative
RSI
53.88
Neutral
STOCH
76.99
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 39.08, equal to the 50-day MA of 38.94, and equal to the 200-day MA of 35.68, indicating a bullish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 76.99 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
$178.88M0.40%
66
Neutral
$998.95M0.60%
73
Outperform
$982.59M0.40%
72
Outperform
$863.24M0.61%
70
Outperform
$599.81M0.08%
68
Neutral
$414.98M0.64%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RSPM
Invesco S&P 500 Equal Weight Materials ETF
39.37
8.15
26.11%
FTXN
First Trust Nasdaq Oil & Gas ETF
RSPN
Invesco S&P 500 Equal Weight Industrials ETF
FXH
First Trust Health Care AlphaDEX Fund
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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