Is Invesco S&P 500 Equal Weight ETF (RSP) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Invesco S&P 500 Equal Weight ETF (RSP) is a smart beta exchange traded fund launched on 04/24/2003.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

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.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

The fund is managed by Invesco. RSP has been able to amass assets over $84.82 billion, making it one of the largest ETFs in the Style Box - Large Cap Blend. Before fees and expenses, RSP seeks to match the performance of the S&P 500 Equal Weight Index.

The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for RSP are 0.20%, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 1.62%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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 15.9% of the portfolio. Financials and Information Technology round out the top three.

Taking into account individual holdings, Sandisk Corp/de (SNDK) accounts for about 0.52% of the fund's total assets, followed by Moderna Inc (MRNA) and Texas Pacific Land Corp (TPL).

The top 10 holdings account for about 3.22% of total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 Equal Weight ETF has gained about 0.61% so far, and is up roughly 12.59% over the last 12 months (as of 04/01/2026). RSP has traded between $152.93 $204.97 in this past 52-week period.

The fund has a beta of 0.95 and standard deviation of 13.83% for the trailing three-year period. With about 509 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 $719.43 billion in assets, Vanguard 500 Index Fund ETF Shares has $825.82 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 Reports

This article originally published on Zacks Investment Research (zacks.com).

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