RSP vs VBR
Invesco S&P 500 Equal Weight ETF vs Vanguard Small Cap Value ETF
Quick Verdict
VBR has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 809 holdings.
Side-by-Side Comparison
| Metric | RSP | VBR | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.05% | |
| AUM | $97.4B | $36.9B | |
| Dividend Yield | 1.51% | 2.23% | |
| Holdings | 510 | 853 | |
| YTD Return | +16.43% | +18.27% | |
| 1Y Return | +20.73% | +23.85% | |
| 3Y Return (annualized) | +15.53% | +16.25% | |
| 5Y Return (annualized) | +9.20% | +9.89% | |
| Volatility (annualized) | 16.5% | 19.0% | |
| Max Drawdown | -60.9% | -64.0% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 24, 2003 | Jan 26, 2004 |
RSP vs VBR Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US). Over the past year RSP returned +20.73% while VBR returned +23.85%. Year to date, RSP is up 16.43% versus a gain of 18.27% for VBR.
Over three years, RSP compounded at +15.53% per year against +16.25% for VBR; over five years the annualized figures are +9.20% and +9.89% respectively. Across the full 23-year window we track, RSP has the edge at +10.15% annualized vs +8.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR. 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 VBR charges 0.05%. On a $10,000 position that is $20 vs $5 annually, a gap of $15 per year that compounds over a long holding period. On income, RSP currently yields 1.51% against 2.23% for VBR.
Holdings Overlap
RSP and VBR share 75 holdings out of 1167 unique holdings combined, representing a 14.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RSP or VBR?
RSP has an expense ratio of 0.20% while VBR charges 0.05%. VBR is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, RSP or VBR?
Over the past year RSP returned +20.73% vs +23.85% for VBR, so VBR leads on 1-year performance. Over the longest common window we track (23 years), RSP annualized +10.15% vs +8.04% for VBR. Past performance does not guarantee future results.
Which is riskier, RSP or VBR?
VBR has been the more volatile fund at 19.0% annualized versus 16.5% for RSP. Worst drawdown: RSP -60.9% vs VBR -64.0%.
Should I hold both RSP and VBR?
RSP and VBR 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 VBR?
RSP and VBR share 75 common holdings with a 14.1% weight overlap. Combined, they hold 1167 unique securities.
Which pays a higher dividend, RSP or VBR?
RSP yields 1.51% while VBR yields 2.23%, so VBR currently pays the higher dividend yield.
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