RSP vs SPY: Equal Weight vs Market Cap S&P 500
Both own the S&P 500. The difference is how much of each stock you own. RSP gives Apple the same weight as a regional bank. SPY gives Apple nearly 7x more weight than average.
RSP and SPY track the same 503-company universe, but RSP (Invesco S&P 500 Equal Weight) weights each at about 0.2% while SPY (SPDR S&P 500) weights by market cap. As of 2026, SPY's top 10 holdings account for over 35% of the fund, primarily mega-cap tech. RSP caps each company at roughly 0.2%, rebalancing quarterly. Equal weighting has historically outperformed market-cap weighting over long periods because it forces a "buy low, sell high" rebalance discipline and provides more exposure to smaller S&P 500 companies that historically earn a size premium. However, RSP charges 0.20% vs SPY's 0.0945%, and it can lag significantly during periods when mega-cap growth stocks dominate returns, as in 2023-2024. RSP is the better choice for investors concerned about concentration. SPY is the better choice for investors who want the cheapest, most liquid S&P 500 exposure.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. How the major brokerages compare →
📋 RSP vs SPY: Key Facts Side by Side
| Metric | RSP | SPY |
|---|---|---|
| Fund Name | Invesco S&P 500 Equal Weight ETF | State Street SPDR S&P 500 ETF Trust |
| Issuer | Invesco | State Street |
| Tracks Index | S&P 500 Equal Weight Index | S&P 500 |
| Expense Ratio | 0.20% | 0.09% ✓ |
| Cost per $10K/yr | $20.00 | $9.45 |
| AUM | $97.3B | $795.3B |
| Holdings | 503 | 503 |
| Inception | 2003 | 1993 |
| 1-Year Return | +17.41% | +18.83% |
| 3-Year Return | +16.58% | +21.81% |
| 5-Year Return | +9.27% | +12.93% |
| Dividend Yield | 1.49% | 1.01% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.00% |
Expense ratio, AUM, and returns updated Aug 30, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 RSP vs SPY: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want focused large-cap US stock exposure via S&P 500 Equal Weight Index
- already use Invesco and prefer staying within one fund family
- want the lowest fees: saves ~$11/yr per $10K vs RSP
- want focused large-cap US stock exposure via S&P 500
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ RSP vs SPY: Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →