Should Invesco S&P 500 Equal Weight ETF (RSP) Be on Your Investing Radar?

Why Large Cap Blend

Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

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 this ETF are 0.2%, putting it on par with most peer products in the space.

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

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 16.3% of the portfolio. Information Technology and Industrials round out the top three.

Looking at individual holdings, Dell Technologies Inc (DELL) accounts for about 0.48% of total assets, followed by Sandisk Corp (SNDK) and Advanced Micro Devices Inc (AMD).

The top 10 holdings account for about 4.1% of total assets under management.

Performance and Risk

RSP seeks to match the performance of the S&P 500 Equal Weight Index before fees and expenses. The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.

The ETF has added roughly 13.46% so far this year and it's up approximately 17.37% in the last one year (as of 07/30/2026). In the past 52-week period, it has traded between $181.56 and $217.69.

The ETF has a beta of 0.91 and standard deviation of 13.72% for the trailing three-year period. With about 510 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Equal Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSP is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $857.96 billion in assets, Vanguard 500 Index Fund ETF Shares has $958.42 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

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

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