RSP vs VB

Quick Verdict

VB has a lower expense ratio. VB delivered stronger 1-year returns. VB offers more diversification with 1112 holdings.

Lower Fees: VBHigher Returns: VBMore Diversified: VB

Side-by-Side Comparison

MetricRSPVBWinner
Expense Ratio0.20%0.03%
AUM$97.4B$81.5B
Dividend Yield1.51%1.48%
Holdings5101,324
YTD Return+15.05%+17.82%
1Y Return+22.43%+29.09%
3Y Return (annualized)+14.91%+16.24%
5Y Return (annualized)+9.18%+8.18%
Volatility (annualized)16.5%18.9%
Max Drawdown-60.9%-61.0%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 24, 2003Jan 26, 2004

RSP vs VB Performance

Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US). Over the past year RSP returned +22.43% while VB returned +29.09%. Year to date, RSP is up 15.05% versus a gain of 17.82% for VB.

Over three years, RSP compounded at +14.91% per year against +16.24% for VB; over five years the annualized figures are +9.18% and +8.18% respectively. Across the full 23-year window we track, RSP has the edge at +10.10% annualized vs +8.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VB has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 16.5% for RSP. 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 -61.0% for VB. 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 0.96. 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 VB charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, RSP currently yields 1.51% against 1.48% for VB.

Holdings Overlap

15.4%overlap

RSP and VB share 96 holdings out of 1449 unique holdings combined, representing a 15.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RSPWeight in VBDifference
SNDK0.24%1.21%0.97%
FIX0.22%0.65%0.43%
CIEN0.21%0.64%0.43%
LITEProProPro
COHRProProPro
NRGProProPro
EMEProProPro
TPRProProPro
ATOProProPro
TERProProPro
See all 10 holdings RSP shares with VB
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Frequently Asked Questions

Which is cheaper, RSP or VB?

RSP has an expense ratio of 0.20% while VB charges 0.03%. VB is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, RSP or VB?

Over the past year RSP returned +22.43% vs +29.09% for VB, so VB leads on 1-year performance. Over the longest common window we track (23 years), RSP annualized +10.10% vs +8.86% for VB. Past performance does not guarantee future results.

Which is riskier, RSP or VB?

VB has been the more volatile fund at 18.9% annualized versus 16.5% for RSP. Worst drawdown: RSP -60.9% vs VB -61.0%.

Should I hold both RSP and VB?

RSP and VB have a monthly-return correlation of 0.96, 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 VB?

RSP and VB share 96 common holdings with a 15.4% weight overlap. Combined, they hold 1449 unique securities.

Which pays a higher dividend, RSP or VB?

RSP yields 1.51% while VB yields 1.48%, so RSP currently pays the higher dividend yield.

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