RSP ETF Beating VOO, SPY as S&P 500 Equal Weight Fund Nears $100 Billion Milestone
Key takeaways
- RSP’s strong year‑to‑date return and near‑$100 billion AUM milestone highlight growing investor appetite for equal‑weight strategies that benefit from small‑cap strength.
- RSP YTD return 13.1%
- VOO YTD return ~10%
- SPY YTD return ~10%
What happened
The Invesco S&P 500 Equal Weight ETF (RSP) has outperformed its market‑cap‑weighted peers, Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY), delivering a 13.1% year‑to‑date return versus about 10% for both VOO and SPY. RSP has attracted over $12.2 billion in new assets this year, bringing its assets under management to just under $100 billion—$98.5 billion to be exact. The fund’s equal‑weight structure tilts exposure toward smaller S&P 500 companies, which have outperformed larger…
Why it matters
RSP’s superior performance and rapid AUM growth signal a shift in investor preference toward equal‑weight strategies that benefit from small‑cap upside. The fund’s lower forward P/E of 16.9 versus roughly 20 for VOO and SPY suggests a more attractive valuation for investors seeking value in a market dominated by…
Short-term and longer-term
Short-term. Short‑term traders should watch RSP’s bid‑ask spread and liquidity as its AUM approaches the $100 billion threshold, which could tighten spreads and improve execution.
Longer-term. Longer‑term investors should consider RSP as a way to gain exposure to the S&P 500 with a tilt toward small‑cap growth, potentially diversifying away from the concentration risk of mega‑caps.