Broaden a portfolio with equal weight
Chris Dahlin
Factor & Core Equity Strategist, ETFs and Indexed Strategies
Broadening stock performance
After three years of persistently narrow market leadership driven by large-cap growth and technology investments, a noticeable shift has begun this year. Stock performance is starting to extend across a broader swath of the market.1
This recent broadening of equity returns may reflect several forces: accelerating economic growth, more attractive valuations in long-overlooked segments, and AI-related productivity gains beginning to materialize for smaller companies that have invested heavily in these capabilities over the last few years. On that last point, when asked recently about the prospect of an AI bubble, Microsoft CEO Satya Nadella noted that a telltale sign would be if the conversation — and the benefits — remained focused solely on tech firms. He emphasized that AI’s advantages must diffuse more evenly across industries for the current boom to avoid taking on bubble-like characteristics. The AI benefits may be starting to accrue more broadly.
Broaden portfolio with equal weight
For investors seeking to broaden portfolio exposures beyond megacap growth and technology, equal-weight strategies offer an effective approach.2 Equal-weight portfolios allocate identically across all constituents, naturally delivering wider exposures than traditional market-cap-weighted approaches, which concentrate heavily in the largest names.
RSP: Invesco S&P 500 Equal Weight ETF
For example, RSP, the Invesco S&P 500 Equal Weight ETF, had a combined 17.3% weight in technology and communication services, compared with 44.7% in the capitalization-weighted S&P 500 Index, as of January 31. Instead, RSP tilts more toward sectors such as industrials, materials, health care, and financials — areas that may benefit if economic growth continues to broaden market leadership.
RSPA: Invesco S&P 500 Equal Weight Income Advantage ETF
Income-focused investors may want to consider RSPA, the Invesco S&P 500 Equal Weight Income Advantage ETF, which pairs exposure to the S&P 500 Equal Weight Index with an active options-based income overlay designed to enhance yield and potentially provide downside mitigation.
Regardless of an investor’s growth or income objective, RSP or RSPA may offer a solution for those seeking to capitalize on the potential for wider market participation.
1 RSP has outperformed the S&P 500 Index by 5.45% NAV year-to-date.
2 Source: Bloomberg, LP, as Jan. 31, 2026
Important Information
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges, and expenses. For this and more complete information about the Fund, call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency
Past performance is not a guarantee of future results.
An investment cannot be made into an index.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
The opinions expressed are those of Invesco and are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Funds are subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Funds.
RSP
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Investments focused in a particular industry or sector are subject to greater risk and are more impacted by market volatility than more diversified investments.
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
RSPA
There are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Securities held by the Fund are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in the value of the securities in the Fund’s portfolio. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises, or other events could result in increased premiums or discounts to the Fund’s net asset value (NAV).
The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
While the Fund is actively managed, a substantial portion of the Fund’s portfolio is designed to track the performance of the Index. In managing this portion of the Fund’s portfolio, the portfolio managers will not generally buy or sell a security unless that security is added or removed, respectively, from the Index, regardless of the performance of that security. If a specific security is removed from the Index, the Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value.
In general, equity values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic, and political conditions.
Investments in ELNs are susceptible to the risks of their underlying instruments, which could include management risk, market risk, and, as applicable, foreign securities and currency risks. ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying instruments move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund’s entire principal investment. An ELN investment is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt, and the Fund may not be repaid the principal amount of, or income from, its investment. ELNs may also be less liquid than more traditional investments, and the Fund may be unable to sell ELNs at a desirable time or price. In addition, the price of ELNs may not correlate with the underlying securities or a fixed income investment
Investments focused in a particular industry are subject to greater risk and are more impacted by market volatility than more diversified investments.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty, and management risks. An investment in a derivative could lose more than the cash amount invested.
Risks of futures contracts include: an imperfect correlation between the value of the futures contract and the underlying commodity; possible lack of a liquid secondary market; inability to close a futures contract when desired; losses due to unanticipated market movements; obligation for the Fund to make daily cash payments to maintain its required margin; failure to close a position may result in the Fund receiving an illiquid commodity; and unfavorable execution prices.
A decision as to whether, when, and how to use options involves the exercise of skill and judgment, and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile, and the use of options can lower total returns.
Short sales may cause an investor to repurchase a security at a higher price, causing a loss. As there is no limit on how much the price of the security can increase, exposure to potential loss is unlimited.
Because the Fund may invest in other investment companies, it's subject to the risks associated with the investment company, and its investment performance may depend on the underlying investment company's performance. The Fund will indirectly pay a proportional share of the investment company's fees and expenses, while continuing to pay its own management fee to the Adviser, resulting in shareholders absorbing duplicate levels of fees.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The value of an individual security or a particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole.
The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind, because of the nature of the Fund's investments. As such, investments in the Fund may be less tax-efficient than investments in ETFs that create and redeem in-kind.
The Fund is subject to numerous market trading risks, including the potential lack of an active market, losses from trading in secondary markets, and disruption in the creation/redemption process. During stressed market conditions, Shares may become less liquid as a result of deteriorating liquidity, which could lead to differences in the market price and the underlying value of those Shares.
Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, or 150,000 Shares.
Invesco Distributors, Inc. 02/26 NA5237523
After three years of persistently narrow market leadership driven by large-cap growth and technology investments, a noticeable shift has begun this year. Stock performance is starting to extend across a broader swath of the market.1
Broadening stock performance
This recent broadening of equity returns may reflect several forces: Accelerating economic growth, more attractive valuations in long-overlooked segments, and AI-related productivity gains beginning to materialize for smaller companies that have invested heavily in these capabilities over the last few years. On that last point, when asked recently about the prospect of an AI bubble, Microsoft CEO Satya Nadella noted that a telltale sign would be if the conversation — and the benefits — remained focused solely on tech firms. He emphasized that AI’s advantages must diffuse more evenly across industries for the current boom to avoid taking on bubble-like characteristics. The AI benefits may be starting to accrue more broadly.
Broaden portfolio with equal weight
For investors seeking to broaden portfolio exposures beyond megacap growth and technology, equal-weight strategies offer an effective approach.2 Equal-weight portfolios allocate identically across all constituents, naturally delivering wider exposures than traditional market-cap-weighted approaches, which concentrate heavily in the largest names.
RSP: Invesco S&P 500 Equal Weight ETF
For example, RSP, the Invesco S&P 500 Equal Weight ETF, had a combined 17.3% weight in technology and communication services, compared with 44.7% in the capitalization-weighted S&P 500 Index, as of January 31. Instead, RSP tilts more toward sectors such as industrials, materials, health care, and financials — areas that may benefit if economic growth continues to broaden market leadership.
RSPA: Invesco S&P 500 Equal Weight Income Advantage ETF
Income-focused investors may want to consider RSPA, the Invesco S&P 500 Equal Weight Income Advantage ETF, which pairs exposure to the S&P 500 Equal Weight Index with an active options-based income overlay designed to enhance yield and potentially provide downside mitigation. Regardless of an investor’s growth or income objective, RSP or RSPA may offer a solution for those seeking to capitalize on the potential for wider market participation.
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Important Information
NA5273851
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency
Past performance is not a guarantee of future results. An investment cannot be made into an index.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
The opinions expressed are those of Invesco and are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Funds are subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Funds.
RSP
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Investments focused in a particular industry or sector are subject to greater risk and are more greatly impacted by market volatility than more diversified investments.
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
RSPA
There are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Securities held by the Fund are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in the value of the securities in the Fund’s portfolio. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises, or other events could result in increased premiums or discounts to the Fund’s net asset value (NAV).
The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
While the Fund is actively managed, a substantial portion of the Fund’s portfolio is designed to track the performance of the Index. In managing this portion of the Fund’s portfolio, the portfolio managers will not generally buy or sell a security unless that security is added or removed, respectively, from the Index, regardless of the performance of that security. If a specific security is removed from the Index, the Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value.
In general, equity values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic, and political conditions.
Investments in ELNs are susceptible to the risks of their underlying instruments, which could include management risk, market risk, and, as applicable, foreign securities and currency risks. ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying instruments move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund’s entire principal investment. An ELN investment is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt, and the Fund may not be repaid the principal amount of, or income from, its investment. ELNs may also be less liquid than more traditional investments, and the Fund may be unable to sell ELNs at a desirable time or price. In addition, the price of ELNs may not correlate with the underlying securities or a fixed income investment.
Investments focused on a particular industry are subject to greater risk and are more greatly impacted by market volatility than more diversified investments.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty, and management risks. An investment in a derivative could lose more than the cash amount invested.
Risks of futures contracts include: an imperfect correlation between the value of the futures contract and the underlying commodity; possible lack of a liquid secondary market; inability to close a futures contract when desired; losses due to unanticipated market movements; obligation for the Fund to make daily cash payments to maintain its required margin; failure to close a position may result in the Fund receiving an illiquid commodity; and unfavorable execution prices.
A decision as to whether, when, and how to use options involves the exercise of skill and judgment, and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile, and the use of options can lower total returns.
Short sales may cause an investor to repurchase a security at a higher price, causing a loss. As there is no limit on how much the price of the security can increase, exposure to potential loss is unlimited.
Because the Fund may invest in other investment companies, it's subject to the risks associated with the investment company, and its investment performance may depend on the underlying investment company's performance. The Fund will indirectly pay a proportional share of the investment company's fees and expenses, while continuing to pay its own management fee to the Adviser, resulting in shareholders absorbing duplicate levels of fees.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The value of an individual security or a particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole.
The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind, because of the nature of the Fund's investments. As such, investments in the Fund may be less tax-efficient than investments in ETFs that create and redeem in-kind.
The Fund is subject to numerous market trading risks, including the potential lack of an active market, losses from trading in secondary markets, and disruption in the creation/redemption process. During stressed market conditions, Shares may become less liquid as a result of deteriorating liquidity, which could lead to differences in the market price and the underlying value of those Shares.
Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, or 150,000 Shares.
Invesco Distributors, Inc. 02/26
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