RSP vs SPY
Invesco S&P 500 Equal Weight ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. RSP offers more diversification with 511 holdings.
Side-by-Side Comparison
| Metric | RSP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.09% | |
| AUM | $100.1B | $821.1B | |
| Dividend Yield | 1.49% | 1.01% | |
| Holdings | 511 | 505 | |
| YTD Return | +15.88% | +12.68% | |
| 1Y Return | +21.24% | +21.82% | |
| 3Y Return (annualized) | +16.53% | +21.98% | |
| 5Y Return (annualized) | +9.22% | +12.89% | |
| Volatility (annualized) | 16.5% | 15.3% | |
| Max Drawdown | -60.9% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 24, 2003 | Jan 22, 1993 |
RSP vs SPY Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RSP returned +21.24% while SPY returned +21.82%. Year to date, RSP is up 15.88% versus a gain of 12.68% for SPY.
Over three years, RSP compounded at +16.53% per year against +21.98% for SPY; over five years the annualized figures are +9.22% and +12.89% respectively. Across the full 23-year window we track, RSP has the edge at +10.12% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RSP has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -60.9% for RSP and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
RSP charges 0.20% per year while SPY charges 0.09%. On a $10,000 position that is $20 vs $9 annually, a gap of $11 per year that compounds over a long holding period. On income, RSP currently yields 1.49% against 1.01% for SPY.
Holdings Overlap
RSP and SPY share 422 holdings out of 515 unique holdings combined, representing a 37.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RSP or SPY?
RSP has an expense ratio of 0.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, RSP or SPY?
Over the past year RSP returned +21.24% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), RSP annualized +10.12% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, RSP or SPY?
RSP has been the more volatile fund at 16.5% annualized versus 15.3% for SPY. Worst drawdown: RSP -60.9% vs SPY -56.5%.
Should I hold both RSP and SPY?
RSP and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between RSP and SPY?
RSP and SPY share 422 common holdings with a 37.3% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, RSP or SPY?
RSP yields 1.49% while SPY yields 1.01%, so RSP currently pays the higher dividend yield.
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