RSP ETF: Compelling Risk Premiums

Summary

  • High equity risk premiums and depleted stock valuations make it a good time to invest in a general equity index fund such as the Invesco S&P 500® Equal Weight ETF.
  • The Fed model shows that equities are undervalued on a price-to-earnings basis.
  • The Invesco S&P 500® Equal Weight ETF's smoothed weighting methodology and value-centric approach are favorable in today's interest rate environment.
  • Risks persist. However, we anticipate risk premiums to award investors accordingly in Invesco S&P 500® Equal Weight ETF.

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This article was written by

Pearl Gray is a proprietary investment fund and independent market research firm specialising in systematic analysis.Our latest work on SA primarily covers: Bonds, Preferreds, REITs, with an occasional drift.Primary Sectors: Financials and Real Estate.Mission: To discover actionable total return ideas at the nexus of rigorous academic theories, practical experience, and common sense.Kindly note that our published content is dispensed as Independent Analysis and Doesn't Constitute Financial Advice. For any content-related concerns, contact our Head of Research: Steve Booyens, CFA or leave a message in the comments section.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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