Share-split context: A forward split was recorded on Jul 17, 2023 with coefficient 5. 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.

Understanding the INVESCO S&P 500 EQUAL WEIGHT MATERIALS ETF (RSPM)

The INVESCO S&P 500 EQUAL WEIGHT MATERIALS ETF (ticker: RSPM) is designed to track the materials sector of the S&P 500. Unlike some funds that give more weight to the biggest companies, this ETF uses an "equal weight" approach. This means it tries to give each company in the materials sector a similar amount of influence on the fund's performance.

What this ETF is trying to do

RSPM focuses on companies involved in the materials industry. This includes businesses that deal with chemicals, metals, mining, and packaging. By using an equal weight strategy, the fund avoids being dominated by just one or two massive corporations.

What the numbers show

The performance of RSPM can be looked at in two ways: price return and total return. Price return only tracks how the share price changes, while total return includes the value of distributions (cash payments) received.

• Year-to-Date (YTD): The price return is approximately 9.14%, while the total return is approximately 10.60%.

• One-Year: The price return is approximately 13.56%, while the total return is approximately 15.66%.

• Three-Year: The price return is approximately 22.18%, while the total return is approximately 29.65%.

Note that this ETF has a history of forward splits. In a forward split, each old share becomes multiple new shares. This makes the price per share look lower, but it does not change how much of the fund you own.

Income and distribution explanation

RSPM provides cash distributions to investors. The current distribution yield is approximately 1.85%. This means the annual cash payments represent about 1.85% of the current share price. The fund usually pays these out quarterly, with 4 payments recorded over the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price movement, the fund has an erosion score of 100, which is labeled as "No price erosion detected." This indicates a good status regarding price stability.

Top Holdings

The following are the top holdings in the fund (note that this list is partial):

• NEWMONT CORP (5.25%)

• THE MOSAIC CO (5.01%)

• CF INDUSTRIES HOLDINGS INC (4.79%)

• FREEPORT-MCMORAN INC (4.65%)

• CORTEVA INC (4.31%)

• INTERNATIONAL FLAVORS & FRAGRANCES INC (4.30%)

• AMCOR PLC ORDINARY SHARES (4.28%)

• BALL CORP (4.17%)

• AVERY DENNISON CORP (4.12%)

• INTERNATIONAL PAPER CO (4.12%)

Pros

• Positive Returns: The fund has shown positive price and total returns over the one-year and three-year periods.

• Price Stability: The erosion score suggests no significant price erosion has been detected.

Cons

• Sector Concentration: Because it focuses on the materials sector, its performance is tied to that specific industry.

Beginner takeaway

RSPM is an ETF that provides exposure to the materials sector using an equal-weight method. It offers both share-price growth and cash distributions. When looking at this fund, it is important to distinguish between the price return (the change in share price) and the total return (which includes the cash distributions).