Invesco S&P 500 Equal Weight Technology ETF (NYSEARCA:RYT) seeks to track the investment results, before fees and expenses, of the S&P 500 Equal Weight Information Technology Index.
RYT provides broad coverage of large technology companies, but its equal-weighting skews it away from having a market-like portfolio. A pure market-cap benchmark would invest heavily in its top securities, which are the mega-caps in the tech industry.
Instead, RYT allocates only a fraction of its overall assets to its top 10 holdings. This produces sector tilts such as an overweight to semiconductors and an underweight to software and information technology (IT) services. The index is rebalanced on a quarterly basis.
Source: Yahoo Finance
RYT tracks an equal-weighted index of S&P 500 technology companies. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of all the components of the S&P 500 Information Technology Index, which contains the common stocks of all companies included in the S&P 500 Index that are classified as members of the information technology services sector, as defined by the Global Industry Classification Standard (GICS).
The fund has amassed $2.8 billion in assets under management and an average spread of 0.6%. Its expense ratio sits at 0.40%, meaning it is relatively inexpensive to hold in relation to other exchange-traded funds. It has 74 holdings overall and a nice 0.84% distribution yield.
As with any opportunity, I urge all potential investors to exercise their own due diligence in deciding whether this fund fits their individual portfolio goals.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.