ticker: rsp

Invesco S&P 500 Equal Weight ETF

Explore the potential benefits of investing in an equal weight strategy that provides access to S&P 500 companies in a cost-effective and tax-efficient way.

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Why invest in RSP?

Twenty years ago, the Invesco S&P 500 Equal Weight ETF (ticker: RSP) helped reinvent how clients access the S&P 500. If you're invested in funds that track the S&P 500 Index, your portfolio may be too concentrated and missing out on potentially higher returns. RSP can help address both concerns with the added potential benefits of cost-effectiveness and tax efficiency. 

  • Eliminate concentration risk in the S&P 500

    Currently, the top 10 companies in the S&P 500 make up over 30% of the index. You may not be properly diversified as a result.

    This chart illustrates the combined weight of the top 10 companies in the S&P 500 index in 2017 and Q3 2023. In 2017, these companies accounted for 21.3% of the total index weight. However, by Q3 2023, their collective weight had surged to 31.9%, which is nearly an all-time high. This represents an increase of 10.7% over the specified period.

    Important information

    • Concentration risk is the potential for investors to have a lot of exposure to a small number of companies, which may mean their investments are not properly diversified. People who invest in products that track the market-cap-weighted S&P 500 Index are becoming overexposed to the top companies in the index, which could potentially be a problem if these companies underperform (if these companies underperform, your portfolio may decrease in value as a result). Data source: Bloomberg L.P., as of September 30, 2023.  Calculation period: Dec. 31, 2017–September 30, 2023 . Percentage of S&P calculated as the total market capitalization of the largest 10 companies in the S&P 500 divided by the total market capitalization of the S&P 500 as of Dec. 31, 2017, and September 30, 2023. An investment cannot be made in an index. "All-time high" claim based on the weight of the top 10 companies in the S&P 500 Index over the past 40 years.

    Diversify with an equal weight approach

    RSP has the same holdings as the S&P 500 Index, but each company is weighted equally to help you diversify.  

    These charts illustrate the composition of the S&P 500 Index (market cap-weighted) and the S&P 500 Equal Weight Index (equal-weighted). In the S&P 500 Index (market cap-weighted), the weight of each company is proportional to its market capitalization. As a result, the top 100 largest companies have a significant influence on the overall index. In contrast, the S&P 500 Equal Weight Index (equal-weighted) assigns an equal weight of 0.2% to each of the 500 companies. This equal weight approach can help reduce concentration risk and provide greater diversification, ensuring that no single company disproportionately impacts the index.

    Important information

    • With the S&P 500 Equal Weight Index, you still get exposure to the largest 500 public U.S. companies in the S&P 500 Index. However, each company is weighted at 0.2%, providing you with more diversification and less concentration. Data sources: Morningstar Research Inc. and Invesco as of September 30, 2023. Diversification does not guarantee a profit or eliminate the risk of loss. For illustrative purposes only.

  • Take advantage of potentially higher returns

    By being less diversified, you may be missing out on potentially higher returns. The smallest 50 companies in the S&P 500 are about 1% of the index but provided about 5% higher return versus the largest 50 (from 12/31/2003, the year the S&P 500 Equal Weight Index was incepted, through 12/31/2022).

    These graphs illustrate two comparisons within the S&P 500: weight comparison and average annual performance comparison. The smallest 50 companies in the S&P 500 constitute approximately 1% of the index’s total weight. In contrast, the largest 50 companies collectively account for roughly 50% of the index’s weight. Despite their smaller weight, the smallest 50 companies have tended to deliver higher returns (4.9% difference annually) compared to the largest 50 companies. This suggests that a more diversified approach, including increased exposure to smaller companies, may offer the potential for higher returns.

    Important information

    • By being overweight the largest companies, investors are underweight the smallest companies in the S&P 500 Index, which have tended to provide better performance. As a result, investors may be missing out on potentially higher returns. Data source: Bloomberg L.P., as of September 30, 2023. Period includes 12/31/2003 – 12/31/22. Past performance is not a guarantee of future results. Index returns do not represent fund returns.

    A history of outperformance vs. the S&P 500

    The S&P 500 Equal Weight Index, which RSP tracks, has outperformed the S&P 500 Index based on rolling monthly periods over the past 3, 5 and 10 years. Dating back to inception in 2003, the S&P 500 Equal Weight Index outperformed the S&P 500 Index by 0.98% on an annualized basis. Likewise, RSP outperformed the S&P 500 Index by 0.57% on an annualized basis.

    This chart depicts the percentage of time the S&P 500 Equal Weight Index has outperformed the S&P 500 Index based on rolling monthly periods over different time frames. Over the past 3 years, the S&P 500 Equal Weight Index outperformed the S&P 500 Index 57% of the time. This figure rises to 59% over the previous five years and further to 64% over the past decade.

    Important information

    • Bar charts represent the percent of time S&P 500 Equal Weight Index outperformed the S&P 500 Index. Source: Morningstar Research Inc. as of September 30, 2023. Performance shown in bar chart consists of rolling monthly periods between January 9, 2003 - September 30, 2023. Annualized outperformance for S&P 500 Equal Weight Index vs S&P 500 Index calculated using daily returns since January 8, 2003 when the S&P 500 Equal Weight Index was incepted. Annualized outperformance for RSP vs S&P 500 Index calculated using daily returns since April 24, 2003 when RSP was incepted. S&P 500 Equal Weight Index had annualized performance of 10.48% versus S&P 500 Index’s annualized performance of 10.02%. From when RSP was incepted (4/24/2003) through 9/30/2023, the fund outperformed the S&P 500 Index by 0.46% (annualized return at net asset value (NAV) of 10.48% vs 10.02%, respectively). Based on rolling monthly periods, RSP outperformed the S&P 500 Index 52%, 52%, 60% of the time over the most recent 3-, 5- and 10-year periods. Past performance is not a guarantee of future results. Index returns do not represent fund returns, click here for fund performance. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. After Tax Held and After Tax Sold are based on NAV.

  • Access at an attractive cost with tax efficiency

    RSP has a management fee that is 75% less than its peers, and it hasn’t paid a capital gains distribution since inception in 2003, helping you keep more of what you earn.

    Expense ratio and capital gains distribution comparison
      RSP Lipper peer group
    Total expense
    ratio¹    		 0.20% 0.91%
    (median)
    Average annual
    capital gains
    distributions²    		 0% 2.67%

    Important information

    • Expense ratio source: Lipper, Bloomberg, as of September 30, 2023. Total expense ratio of 0.20% represented for RSP. Lipper Multi-Cap Value Funds Classification median expense ratio is based on open-end, no-load mutual funds and ETFs; excludes funds of funds. An investment cannot be made directly into an index. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability to react to market changes and the potential to outperform a stated benchmark. ETFs can be traded throughout the day, whereas mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs, typically they are still more liquid than most mutual funds because they trade on exchanges. While it is not Invesco’s intention, there is no guarantee that the Funds will not distribute capital gains to its shareholders. Capital gains source: Lipper, Bloomberg, as of September 30, 2023. Lipper Multi-Cap Value Funds Classification average annualized capital gains rate (%NAV) are based on open end, no-load mutual funds and ETFs; excludes funds of funds.

RSP FAQ

RSP tracks the S&P 500 Equal Weight Index, which consists of the same companies within the market cap-weighted S&P 500 Index but equally weights them (each company has the same weight of 0.20%). The underlying index and fund rebalance quarterly and reconstitute yearly.

Concentration risk is when investors have a lot of exposure to a small number of companies, which could mean their investments are not properly diversified. If one of those companies declines in value, there could be negative performance implications. Diversifying can potentially help to reduce exposure to companies that may not perform well.

Market cap strategies can overweight the largest companies and underweight the smallest companies. An equal weight strategy provides equal exposure to both types of companies. When smaller companies outperform larger companies, investors in equally-weighted strategies have greater exposure to these smaller companies in their portfolio, which may lead to potential outperformance.

RSP is a unique equal weight strategy that has 75% lower management fees than its peers and hasn’t paid a capital gains distribution since its inception in 2003.

  1. Diversify a market cap-weighted core equity strategy with an equal weight approach.

  2. Complement large-cap growth equity strategies with a strategy that has greater exposure to the smaller companies within the S&P 500.

  3. Replace high-fee, underperforming active strategies with an equal weight strategy that has a track record of outperformance.
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Discover our equal weight sector ETFs

RSP is part of our broader equal weight suite that includes:

  • Sector Equity

    RSPT

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    Invesco S&P 500® Equal Weight Technology ETF

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  • Sector Equity

    RSPS

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    Invesco S&P 500® Equal Weight Consumer Staples ETF

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  • Sector Equity

    RSPH

    ETF

    Invesco S&P 500® Equal Weight Health Care ETF

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Effective at the close of markets on Tuesday, June 6, 2023, the Fund ticker changed for RHS to RSPS; RYT to RSPT and RYH to RSPH. No other changes were made to the Fund. See the prospectus for more information. 

Definitions

  • 1

    The total of all fees to manage or operate an investment fund.
  • 2

    Average taxable gain passed on to shareholders when an investment within an ETF or mutual fund is sold for more than its original price.