RSP vs VEA
Invesco S&P 500 Equal Weight ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | RSP | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $97.4B | $230.9B | |
| Dividend Yield | 1.51% | 2.57% | |
| Holdings | 510 | 3,918 | |
| YTD Return | +15.37% | +15.82% | |
| 1Y Return | +22.88% | +29.42% | |
| 3Y Return (annualized) | +15.20% | +20.28% | |
| 5Y Return (annualized) | +8.99% | +10.01% | |
| Volatility (annualized) | 16.5% | 17.8% | |
| Max Drawdown | -60.9% | -62.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 24, 2003 | Jul 20, 2007 |
RSP vs VEA Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year RSP returned +22.88% while VEA returned +29.42%. Year to date, RSP is up 15.37% versus a gain of 15.82% for VEA.
Over three years, RSP compounded at +15.20% per year against +20.28% for VEA; over five years the annualized figures are +8.99% and +10.01% respectively. Across the full 19-year window we track, RSP has the edge at +10.11% annualized vs +3.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RSP charges 0.20% per year while VEA 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 2.57% for VEA.
Holdings Overlap
RSP and VEA share 4 holdings out of 3437 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 VEA?
RSP has an expense ratio of 0.20% while VEA charges 0.03%. VEA is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, RSP or VEA?
Over the past year RSP returned +22.88% vs +29.42% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), RSP annualized +10.11% vs +3.12% for VEA. Past performance does not guarantee future results.
Which is riskier, RSP or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 16.5% for RSP. Worst drawdown: RSP -60.9% vs VEA -62.9%.
Should I hold both RSP and VEA?
RSP and VEA have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RSP and VEA?
RSP and VEA share 4 common holdings with a 0.2% weight overlap. Combined, they hold 3437 unique securities.
Which pays a higher dividend, RSP or VEA?
RSP yields 1.51% while VEA yields 2.57%, so VEA currently pays the higher dividend yield.
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