The Invesco S&P 500 Equal Weight ETF (RSP Quick QuoteRSP - Free Report) was launched on 04/24/2003, and is a smart beta exchange traded fund designed to offer 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.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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

RSP is managed by Invesco, and this fund has amassed over $89.21 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

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.

Operating expenses on an annual basis are 0.20% for RSP, making it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 1.49%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

For RSP, it has heaviest allocation in the Information Technology sector --about 18.6% of the portfolio --while Industrials and Financials round out the top three.

When you look at individual holdings, Ciena Corp (CIEN) accounts for about 0.27% of the fund's total assets, followed by Apa Corp (APA) and Lumentum Holdings Inc (LITE).

The top 10 holdings account for about 2.45% of total assets under management.

Performance and Risk

The ETF has gained about 9.44% and is up about 20.08% so far this year and in the past one year (as of 06/01/2026), respectively. RSP has traded between $176.57 and $208.83 during this last 52-week period.

RSP has a beta of 0.92 and standard deviation of 13.70% 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 $843.42 billion in assets, Vanguard 500 Index Fund ETF Shares has $978.08 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.