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

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The Invesco S&P 500 Equal Weight ETF (RSP - Free Report) 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?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

RSP is managed by Invesco, and this fund has amassed over $82.96 billion, which makes it one of the largest ETFs in the Style Box - Large Cap Blend. This particular fund, before fees and expenses, 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

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Operating expenses on an annual basis are 0.20% for this ETF, which makes it on par with most peer products in the space.

RSP's 12-month trailing dividend yield is 1.58%.

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.

RSP's heaviest allocation is in the Industrials sector, which is about 16.2% of the portfolio. Its Financials and Information Technology round out the top three.

When you look at individual holdings, Sandisk Corp/de (SNDK) accounts for about 0.32% of the fund's total assets, followed by Lam Research Corp (LRCX) and Micron Technology Inc (MU).

RSP's top 10 holdings account for about 2.48% of its total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 Equal Weight ETF has added roughly 3.63% so far, and it's up approximately 11.53% over the last 12 months (as of 01/30/2026). RSP has traded between $152.93 $199.66 in this past 52-week period.

The fund has a beta of 0.96 and standard deviation of 14.13% 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 S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $762.34 billion in assets, Vanguard S&P 500 ETF has $852.35 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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