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Look beyond tech But there are opportunities beyond tech: Morningstar data reveals the funds outside of tech and growth sectors that have also outperformed over the last five years. Top holdings include Home Depot, Johnson Controls International, Floor & Décor and Trane Technologies. Guinness Atkinson Alternative Energy Fund : This fund picks companies in the alternative energy sector, with at least half of the business dedicated to renewable energy or energy efficiency. Global X Lithium and Battery Tech ETF : The ETF comprises lithium producers and lithium battery makers — all essential to electric vehicles. Top holdings include United Airlines, Marathon Oil, Tyson Foods, Best Buy, and Synchrony Financial.
Persons: James Demmert, Hubbell, MasTec, Invesco Russell, Russell, Vanguard Baillie Gifford Organizations: Street Research, U.S . Federal, Morningstar, Enphase Energy, Fidelity, Housing, Home, Johnson, Trane Technologies, Guinness Atkinson Alternative Energy Fund, Schneider, NextEra Energy, Shelton Sustainable Equity Fund, Bunge, Battery Tech ETF, Samsung SDI, Trust, Industrial Renaissance, SPX Technologies, Sterling Infrastructure, Global, U.S . Infrastructure Development, Holdings, Rockwell Automation, United Rentals, Deere, Co, United Airlines, Marathon Oil, Tyson Foods, Synchrony, Heptagon, Equity Fund, Xenon Pharmaceuticals, TransMedics, FTAI Aviation, Vanguard, Moderna, Alnylam Pharmaceuticals, Coursera, Water Resources, Nasdaq, Water Locations: Luxembourg, Eaton, Albemarle
The Invesco S & P 500 Equal Weight ETF (RSP) rose 2.8% in the first week of the new year, roughly double the gains for the S & P 500. The index was down less than 12% last year on a total return basis, while the S & P 500 fell nearly 20%. Similar funds like the Invesco Russell 1000 Equal Weight ETF (EQAL) have also outperformed. The run has been so strong that, as CNBC's Michael Santoli pointed out in his weekend column , the S & P 500 equal weight index is trading at a multiyear high versus the S & P 500. The upcoming earnings season may be another reason for investors to consider an equal weight fund.
This is notably different from the S & P 500 and Nasdaq Composite , which are weighted based on market cap. Bank of America ETF strategist Jared Woodard listed the Invesco S & P 500 Equal Weight ETF (RSP) as a top trade for 2023. The fund had a total return of -11.6% in 2022, meaning its decline was significantly less than the S & P 500. After tech stocks underperformed again in December, value stocks have now made up a lot of ground in the major indexes. However, equal-weighted funds still give investors more exposure to value stocks and areas like energy and materials than broad index funds.
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