RWL - RWL: Not A Good Investment Choice Based On Its Methodology
2024-05-05 10:34:35 ET
Summary
- Invesco S&P 500 Revenue ETF (RWL) constructs its portfolio by weighting stocks based on revenues.
- RWL has less volatility than the S&P 500 index due to its higher exposure to defensive sectors.
- RWL's long-term return is inferior to the S&P 500 index, likely due to its low exposure to growth stocks.
ETF Overview
Invesco S&P 500 Revenue ETF ( RWL ) has a portfolio of U.S. stocks that is established by weighting stocks in the S&P 500 index according to revenues earned by each company, with no individual stocks consisting more than 5% of the total portfolio. RWL has an expense ratio of 0.39%. This ratio is much higher than other broader market ETFs. For example, SPDR S&P 500 ETF ( SPY ) and Vanguard S&P 500 ETF ( VOO ) have expense ratios of only 0.09% and 0.03% respectively. RWL has less volatility than the S&P 500 index as it has a higher exposure to defensive sectors. However, its total return in the past has been less than the S&P 500 index due to its lower exposure to growth stocks. Therefore, we think investors may want to seek other funds that has the potential to outperform the S&P 500 index instead....
RWL: Not A Good Investment Choice Based On Its Methodology