RSP vs VCIT
Invesco S&P 500 Equal Weight ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
VCIT has a lower expense ratio. RSP delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | RSP | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $97.4B | $67.3B | |
| Dividend Yield | 1.51% | 4.77% | |
| Holdings | 510 | 2,253 | |
| YTD Return | +15.12% | -0.86% | |
| 1Y Return | +22.62% | +2.08% | |
| 3Y Return (annualized) | +15.08% | +5.97% | |
| 5Y Return (annualized) | +9.08% | +0.79% | |
| Volatility (annualized) | 16.5% | 6.0% | |
| Max Drawdown | -60.9% | -20.7% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Apr 24, 2003 | Nov 19, 2009 |
RSP vs VCIT Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year RSP returned +22.62% while VCIT returned +2.08%. Year to date, RSP is up 15.12% versus a loss of 0.86% for VCIT.
Over three years, RSP compounded at +15.08% per year against +5.97% for VCIT; over five years the annualized figures are +9.08% and +0.79% respectively. Across the full 17-year window we track, RSP has the edge at +10.10% annualized vs +1.72%. 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 6.0% for VCIT. 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 -20.7% for VCIT. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RSP charges 0.20% per year while VCIT 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 4.77% for VCIT.
Holdings Overlap
RSP and VCIT share 3 holdings out of 2449 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RSP or VCIT?
RSP has an expense ratio of 0.20% while VCIT charges 0.03%. VCIT is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, RSP or VCIT?
Over the past year RSP returned +22.62% vs +2.08% for VCIT, so RSP leads on 1-year performance. Over the longest common window we track (17 years), RSP annualized +10.10% vs +1.72% for VCIT. Past performance does not guarantee future results.
Which is riskier, RSP or VCIT?
RSP has been the more volatile fund at 16.5% annualized versus 6.0% for VCIT. Worst drawdown: RSP -60.9% vs VCIT -20.7%.
Should I hold both RSP and VCIT?
RSP and VCIT have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RSP and VCIT?
RSP and VCIT share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2449 unique securities.
Which pays a higher dividend, RSP or VCIT?
RSP yields 1.51% while VCIT yields 4.77%, so VCIT currently pays the higher dividend yield.
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