U.S. markets open in 1 hour 43 minutes

  • S&P Futures

    3,805.50
    -21.75 (-0.57%)
     

  • Dow Futures

    30,906.00
    -155.00 (-0.50%)
     

  • Nasdaq Futures

    11,523.25
    -88.00 (-0.76%)
     

  • Russell 2000 Futures

    1,714.10
    -14.40 (-0.83%)
     

  • Crude Oil

    108.13
    -0.30 (-0.28%)
     

  • Gold

    1,799.90
    -1.60 (-0.09%)
     

  • Silver

    19.84
    +0.25 (+1.27%)
     

  • EUR/USD

    1.0301
    -0.0123 (-1.18%)
     

  • 10-Yr Bond

    2.8890
    0.0000 (0.00%)
     

  • Vix

    28.18
    -0.53 (-1.85%)
     

  • GBP/USD

    1.2001
    -0.0103 (-0.85%)
     

  • USD/JPY

    136.0900
    +0.4300 (+0.32%)
     

  • BTC-USD

    19,721.91
    +134.58 (+0.69%)
     

  • CMC Crypto 200

    428.47
    +8.33 (+1.98%)
     

  • FTSE 100

    7,161.83
    -70.82 (-0.98%)
     

  • Nikkei 225

    26,423.47
    +269.66 (+1.03%)
     

Under the Hood of RTM

Elle Caruso
·2 min read

This article was originally published on ETFTrends.com.

Investors looking for concentrated exposure to the materials sector of the S&P 500 may consider this ETF.

While the S&P 500 is down nearly 13% as of the end of April, the S&P 500 Equal Weight Materials Index has been able to mitigate losses, returning 0.12% during the same period, according to data from Invesco’s website.

Over a one-year period, the S&P 500 is up just 0.21% while the Equal Weight Materials Index is up 10.58%, according to data from Invesco’s website.

Investors can gain exposure with the Invesco S&P 500 Equal Weight Materials ETF (RTM). This ETF offers exposure to equities included in the S&P 500 Materials Index, which covers the following industries: chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products, according to VettaFi.

RTM is different from other ETFs tracking the same index because it employs a unique equal-weighted strategy, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives, and a methodology that some investors believe will add value over the long haul, according to VettaFi.

An equal-weight strategy can reduce concentration risk by weighting each constituent company equally so that a small group of companies does not have an outsized impact on the index.

The fund has 30 holdings as of May 26, 92.95% of which are large-cap companies and 7.05% are mid-cap companies, according to VettaFi.

Holdings in the fund currently include Albemarle Corporation (ALB), Amcor PLC TEMP (AMCDC), Corteva Inc. (CTVA), Sherwin-Williams Company (SHW), and Sherwin-Williams Company (SHW), among others, according to VettaFi.

The fund charges a 40 basis point expense ratio.

For more news, information, and strategy, visit our Portfolio Strategies Channel.

POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM

READ MORE AT ETFTRENDS.COM >

Recommended Stories