Equal weight S&P 500 ETF has outperformed SPY, VOO, and IVV over the past 20 years
Apr. 25, 2023 7:41 AM ET
Invesco S&P 500® Equal Weight ETF (RSP), VOO, IVV, SPY SP500
By: Jason Capul, SA News Editor
 Matteo Colombo/DigitalVision via Getty Images
Shares of the Invesco S&P 500 Equal Weight ETF (NYSEARCA: RSP) will celebrate its 20th birthday this week and its lifetime returns have outperformed the world's largest S&P 500 tracking ETF in the SPDR S&P 500 ETF Trust (NYSEARCA: SPY).
RSP which debuted back on April 30th of 2003 has returned investors +469.6% over its 20-year lifetime. At the same time, SPY over the same 20-years delivered investors with a return of +348.9%.
RSP’s less concentrated fund allows for each of the S&P 500’s ( SP500) holdings to shine equally whereas SPY and other S&P 500 tracking funds such as Vanguard S&P 500 ETF (NYSEARCA: VOO) and iShares Core S&P 500 ETF (NYSEARCA: IVV) have a clustered top-heavy allocation towards mega-cap names.
SPY, VOO, and IVV all have top ten holdings that together represent just over 27% of each of the underlying ETFs. At the same time, RSP’s equally weighted names have a top ten that equates to a 2.29% ETF weighting.
The smart beta and more risk diverse focused RSP now has a 20-year track record to stand on when looking at investing in the complete S&P 500. |
