RSPC
Invesco S&P 500 Equal Weight Communication Services ETF
Explore the potential benefits of investing in an equal weight strategy that provides access to S&P 500 companies in a cost-effective and tax-efficient way.
Over twenty years ago, the Invesco S&P 500 Equal Weight ETF (ticker: RSP) helped reinvent how clients access the S&P 500. If you're invested in funds that track the S&P 500 Index, your portfolio may be too concentrated and missing out on potentially higher returns. RSP can help address both concerns with the added potential benefits of cost-effectiveness and tax efficiency.
Currently, the top 10 companies in the S&P 500 make up over 30% of the index. You may not be properly diversified as a result.1
RSP has the same holdings as the S&P 500 Index, but each company is weighted equally to help you diversify.
By being less diversified, you may be missing out on potentially higher returns. The smallest 50 companies in the S&P 500 are about 1% of the index but provided about 5% higher return versus the largest 50 (from 12/31/2003, the year the S&P 500 Equal Weight Index was incepted, through 12/31/2024).
The S&P 500 Equal Weight Index, which RSP tracks, has outperformed the S&P 500 Index based on rolling monthly periods over the past 3, 5 and 10 years. Dating back to inception in 2003, the S&P 500 Equal Weight Index outperformed the S&P 500 Index by 0.51% on an annualized basis. Likewise, RSP outperformed the S&P 500 Index by 0.10% on an annualized basis.
RSP has a management fee that is 68% less than its peers, and it hasn’t paid a capital gains distribution since inception in 2003, helping you keep more of what you earn.
RSP | Lipper peer group | |
---|---|---|
Total expense ratio |
0.20% | 0.60% (median) |
Average annual capital gains distributions |
0% | 2.55% |
RSP tracks the S&P 500 Equal Weight Index, which consists of the same companies within the market cap-weighted S&P 500 Index but equally weights them (each company has the same weight of 0.20%). The underlying index and fund rebalance quarterly and reconstitute yearly.
Concentration risk is when investors have a lot of exposure to a small number of companies, which could mean their investments are not properly diversified. If one of those companies declines in value, there could be negative performance implications. Diversifying can potentially help to reduce exposure to companies that may not perform well.
Market cap strategies can overweight the largest companies and underweight the smallest companies. An equal weight strategy provides equal exposure to both types of companies. When smaller companies outperform larger companies, investors have greater exposure to them in their portfolio versus a market cap-weighted strategy, leading to potential outperformance.
RSP is a unique equal weight strategy that has 68% lower management fees than its peers and hasn’t paid a capital gains distribution since its inception in 2003.
Ready to take the next step? Download our guide, review the fund’s product details page or explore the latest RSP commentary.
RSP is part of our broader equal weight suite that includes:
RSPC
Invesco S&P 500 Equal Weight Communication Services ETF
RSPT
Invesco S&P 500® Equal Weight Technology ETF
RSPD
Invesco S&P 500® Equal Weight Consumer Discretionary ETF
NA4460870
Important information
Invesco S&P 500 Equal Weight ETF:
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale. Investments focused in a particular industry or sector, are subject to greater risk, and are more greatly impacted by market volatility, than a more diversified investments.
Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
Invesco does not provide tax advice. Investors should always consult their own legal or tax professional for information concerning their individual situation.
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