ETF Education Report: RSPR

What this ETF is trying to do

The INVESCO S&P 500 (R) EQUAL WEIGHT REAL ESTATE ETF, trading under the ticker RSPR, focuses on real estate companies. Instead of giving more weight to the biggest companies, this ETF uses an "equal weight" approach for its holdings. This means it spreads its investments across many different real estate businesses in the S&P 500.

What the numbers show

It is important to understand that "price return" and "total return" are different. Price return only tracks how the share price moves. Total return includes both the share price movement and any cash distributions paid out.

• Year-to-Date (YTD): The price return is up approximately 2.66%, while the total return is up approximately 4.48%.

• One-Year: The price return was down approximately -2.94%, but the total return was actually positive at approximately 0.03%.

• Three-Year: The price return was up approximately 14.21%, and the total return was up approximately 23.39%.

An estimated price from roughly one year ago was $35.57. The current price is $34.52.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.01%. Over the last 12 months, there were 4 distributions. These payments usually happen on a quarterly basis. While these payments provide cash, 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). While a falling share price can sometimes be related to erosion, it is not proof of it. For RSPR, the erosion-risk score is 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.

Top Holdings

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

• WELLTOWER INC (3.85%)

• CBRE GROUP INC CLASS A (3.75%)

• VENTAS INC (3.73%)

• BXP INC (3.58%)

• DIGITAL REALTY TRUST INC (3.54%)

• HEALTHPEAK PROPERTIES INC (3.51%)

• EQUINIX INC (3.48%)

• SIMON PROPERTY GROUP INC (3.44%)

• ESSEX PROPERTY TRUST INC (3.43%)

• REALTY INCOME CORP (3.40%)

Pros

• The ETF has a history of positive total returns over the one-year, three-year, and five-year periods.

• The erosion-risk score suggests the fund is currently stable.

Cons

• The one-year price return was negative, meaning the share price itself dropped over that period.

Beginner takeaway

When looking at an ETF like RSPR, remember to look at the total return, not just the price change. The total return shows you how much you would have earned if you included the cash distributions. Also, keep in mind that holdings can change over time.