The Invesco S&P 500 Equal Weight ETF (RSP) made its debut on 04/24/2003, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $99.43 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Blend. RSP is managed by Invesco. RSP seeks to match the performance of the S&P 500 Equal Weight Index before fees and expenses.
The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, making it on par with most peer products in the space.
RSP's 12-month trailing dividend yield is 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector - about 16.4% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Moderna Inc (MRNA) accounts for about 0.29% of total assets, followed by Bio-techne Corp (TECH) and Genuine Parts Co (GPC).
The top 10 holdings account for about 2.25% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight ETF has gained about 15.81% so far, and was up about 21.58% over the last 12 months (as of 08/05/2026). RSP has traded between $182.18 $220.23 in this past 52-week period.
The fund has a beta of 0.91 and standard deviation of 13.74% for the trailing three-year period. With about 511 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $900.23 billion in assets, Vanguard 500 Index Fund ETF Shares has $1012.39 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco S&P 500 Equal Weight ETF (RSP): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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