RSP vs VGIT

Quick Verdict

VGIT has a lower expense ratio. RSP delivered stronger 1-year returns. RSP offers more diversification with 433 holdings.

Lower Fees: VGITHigher Returns: RSPMore Diversified: RSP

Side-by-Side Comparison

MetricRSPVGITWinner
Expense Ratio0.20%0.03%
AUM$97.4B$42.1B
Dividend Yield1.51%3.84%
Holdings510106
YTD Return+15.05%-0.62%
1Y Return+22.43%+1.32%
3Y Return (annualized)+14.91%+3.60%
5Y Return (annualized)+9.18%-0.12%
Volatility (annualized)16.5%4.3%
Max Drawdown-60.9%-17.2%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityFixed Income
InceptionApr 24, 2003Nov 19, 2009

RSP vs VGIT Performance

Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year RSP returned +22.43% while VGIT returned +1.32%. Year to date, RSP is up 15.05% versus a loss of 0.62% for VGIT.

Over three years, RSP compounded at +14.91% per year against +3.60% for VGIT; over five years the annualized figures are +9.18% and -0.12% respectively. Across the full 17-year window we track, RSP has the edge at +10.10% annualized vs +0.75%. 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 4.3% for VGIT. 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 -17.2% for VGIT. 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RSP charges 0.20% per year while VGIT 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 3.84% for VGIT.

Holdings Overlap

0.0%overlap

RSP and VGIT share 0 holdings out of 517 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, RSP or VGIT?

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

Which performed better, RSP or VGIT?

Over the past year RSP returned +22.43% vs +1.32% for VGIT, so RSP leads on 1-year performance. Over the longest common window we track (17 years), RSP annualized +10.10% vs +0.75% for VGIT. Past performance does not guarantee future results.

Which is riskier, RSP or VGIT?

RSP has been the more volatile fund at 16.5% annualized versus 4.3% for VGIT. Worst drawdown: RSP -60.9% vs VGIT -17.2%.

Should I hold both RSP and VGIT?

RSP and VGIT have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RSP and VGIT?

RSP and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 517 unique securities.

Which pays a higher dividend, RSP or VGIT?

RSP yields 1.51% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.

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