Share-split context: A forward split was recorded on Jul 17, 2023 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: INVESCO S&P 500 EQUAL WEIGHT CONSUMER DISCRETIONARY ETF (RSPD)

What this ETF is trying to do

The RSPD ETF focuses on companies in the "consumer discretionary" sector. This sector usually includes businesses that sell things people choose to buy, like travel services, restaurants, and retail goods. Because this is an "equal weight" ETF, it tries to give similar importance to the companies it holds rather than letting one giant company dominate the whole group.

Top Holdings

The following are some of the top companies held by this ETF. Please note that this is a partial list and holdings can change over time:

• DoorDash Inc (3.16%)

• Expedia Group Inc (2.98%)

• Airbnb Inc (2.92%)

• Genuine Parts Co (2.84%)

• Chipotle Mexican Grill Inc (2.57%)

• Booking Holdings Inc (2.55%)

• Garmin Ltd (2.52%)

• Hasbro Inc (2.36%)

• Ulta Beauty Inc (2.35%)

• Tractor Supply Co (2.34%)

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return (how much the share price changed) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The price return is approximately -9.07%, while the total return is approximately -8.4%.

• One-Year: The price return is approximately -8.47%, while the total return is approximately -7.62%.

• Three-Year: The price return is approximately 26.30%, while the total return is approximately 30.15%.

This ETF has a history of "forward splits." In July 2023, one old share became three new shares. During a forward split, the price per share drops proportionally, but your total ownership stays the same. This is a normal adjustment and not a loss of value.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The current distribution yield is approximately 0.99%. These payments usually happen four times a year (quarterly). While distributions provide cash income, they are not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). StockValueFinder uses an erosion-risk score to measure this risk. RSPD has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and not a definitive statement that the fund's value has collapsed.

Pros

• The ETF has shown positive total returns over a three-year period (approximately 30.15%).

• It provides regular cash distributions to investors.

Cons

• The ETF has experienced a share-price decline over the last year and year-to-date.

• It has a "mild" erosion-risk score.

Beginner takeaway

When looking at an ETF like RSPD, remember that a high distribution yield does not guarantee you will make money. Always look at the total return to see how both price changes and cash payments work together. Also, keep in mind that while a falling share price is a "price decline," it is different from the total value of the fund's assets (NAV) eroding.