NYSEMKT: RSP
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What is the Invesco S&P 500 Eql Wght ETF?
The Invesco S&P 500 Equal Weight ETF, or Invesco S&P 500 Eql Wght ETF, is an exchange-traded fund (ETF) that tracks the 500 companies in the S&P 500 index. It trades under the ticker RSP. But unlike most S&P 500 ETFs, the Invesco S&P 500 Eql Wght ETF uses an equal weighting system, with each holding given a 1/500th weighting.
The case for investing in an S&P 500 ETF that uses an equal weighting system instead of the standard market-cap weighting system lies in the fact that the S&P 500 index is heavily concentrated in just a handful of giant companies. The largest 10 holdings of the S&P 500 index account for about 50% of its weighting, while the smallest 50 companies only make up about 1%.
Stocks with a smaller market capitalization are thought to have more growth potential (although this hasn't panned out in recent years). In theory, though, equal weighting provides the opportunity for outperformance. While the ETF provides more exposure to stocks with smaller market capitalizations, it doesn't provide exposure to small-cap stocks or even mid-cap stocks. As of mid-2025, the S&P 500 requires that companies have a $20.5 billion market cap to join the index. Any stock with a market cap above $10 billion is usually considered a large-cap stock.
Exchange-Traded Fund (ETF)
How to buy the Invesco S&P 500 Eql Wght ETF
The process for investing in ETFs like the Invesco S&P 500 Eql Wght ETF is simple. You'll buy and sell shares of the fund the same way you'd buy and sell shares of individual stocks. To start investing, follow these steps:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in the Invesco S&P 500 Eql Wght ETF?
Traditional S&P 500 ETFs that use a market-cap weighting system have a solid track record of generating positive returns over long periods of time. That's why they're among the top ETFs for long-term investors. So, think carefully about your investment goals before you deviate from the tried-and-true formula.
Consider investing in the Invesco S&P 500 Eql Wght ETF if:
- You're wary of the S&P 500's heavy concentration in tech stocks.
- You already have significant exposure to the stocks that have driven the S&P 500's recent growth.
- You want more exposure to mid-cap stocks.
Think twice about investing in the Invesco S&P 500 Eql Wght ETF if:
- You're satisfied with the historical average annual returns of about 10% that a regular S&P 500 ETF provides.
- You believe the "Magnificent Seven" stocks (Microsoft, Google parent Alphabet (GOOG +0.46%) (GOOGL +0.54%), Meta Platforms Inc. (META +0.10%), Tesla, Amazon, Apple, and Nvidia (NVDA +1.06%) will continue to be key drivers of the S&P 500's returns.
- You're seeking exposure to small-cap stocks or mid-cap stocks since the S&P 500 index consists of large-cap stocks.
Does the Invesco S&P 500 Eql Wght ETF pay a dividend?
Yes, the Invesco S&P 500 Eql Wght ETF pays a quarterly dividend based on the dividends the companies in the index pay to shareholders. As of mid-May 2025, the fund's annual dividend yield was 1.65%, slightly higher than the S&P 500 index's yield of about 1.3%. Many of the best dividend ETFs have significantly higher yields, though.
ETF Expense Ratio
What is the Invesco S&P 500 Eql Wght ETF expense ratio?
An ETF's expense ratio is the percentage of your investment that goes toward fees. The best ETFs offer low expense ratios because high fees diminish your returns over time.
The Invesco S&P 500 Eql Wght ETF has a 0.2% expense ratio. That means $20 of a $10,000 investment goes toward fees, while the remaining $9,980 gets invested in the fund. A 0.2% expense ratio probably shouldn't deter you from investing if you believe in the equal weighting methodology. But for comparison, consider that the top S&P 500 ETFs have expense ratios as low as 0.03%.
Historical performance of the Invesco S&P 500 Eql Wght ETF
The Invesco S&P 500 Eql Wght ETF has generally underperformed the S&P 500 over time. Although past performance isn't a guarantee of future returns, it's important to consider historical returns before you make an investment decision. Below, you'll find the averaged annualized returns of the Invesco S&P 500 Eql Wght ETF as of June 5, 2025. For comparison, we've included the returns of the S&P 500 index.
Period | Invesco S&P 500 Eql Wght ETF | S&P 500 index |
1-year returns | 8.50% | 13.52% |
3-year returns | 7.89% | 14.41% |
5-year returns | 13.97% | 15.94% |
10-year returns | 10.08% | 12.86% |
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The bottom line on the Invesco S&P 500 Eql Wght ETF
The Invesco S&P 500 Eql Wght ETF could be a decent fit for you if you're concerned that a regular S&P 500 ETF is too heavily concentrated in a few giant tech stocks. But historically, the equal weighting methodology has produced lower returns than the S&P 500 index's market-cap-weighting system. If you're looking to diversify your stock holdings, consider investing in sector ETFs in industries that are underweighted in the index or gaining exposure to a broader mix of stocks through an ETF that invests in small- or mid-cap stocks.
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