RSP vs VGSH

Quick Verdict

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

Lower Fees: VGSHHigher Returns: RSPMore Diversified: RSP

Side-by-Side Comparison

MetricRSPVGSHWinner
Expense Ratio0.20%0.03%
AUM$97.4B$29.4B
Dividend Yield1.51%3.87%
Holdings51094
YTD Return+16.43%+0.81%
1Y Return+20.73%+2.53%
3Y Return (annualized)+15.53%+4.29%
5Y Return (annualized)+9.20%+1.90%
Volatility (annualized)16.5%1.4%
Max Drawdown-60.9%-6.7%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityFixed Income
InceptionApr 24, 2003Nov 19, 2009

RSP vs VGSH Performance

Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year RSP returned +20.73% while VGSH returned +2.53%. Year to date, RSP is up 16.43% versus a gain of 0.81% for VGSH.

Over three years, RSP compounded at +15.53% per year against +4.29% for VGSH; over five years the annualized figures are +9.20% and +1.90% respectively. Across the full 17-year window we track, RSP has the edge at +10.15% annualized vs +0.71%. 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 1.4% for VGSH. 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 -6.7% for VGSH. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RSP charges 0.20% per year while VGSH 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 3.87% for VGSH.

Holdings Overlap

0.0%overlap

RSP and VGSH share 0 holdings out of 509 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 VGSH?

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

Which performed better, RSP or VGSH?

Over the past year RSP returned +20.73% vs +2.53% for VGSH, so RSP leads on 1-year performance. Over the longest common window we track (17 years), RSP annualized +10.15% vs +0.71% for VGSH. Past performance does not guarantee future results.

Which is riskier, RSP or VGSH?

RSP has been the more volatile fund at 16.5% annualized versus 1.4% for VGSH. Worst drawdown: RSP -60.9% vs VGSH -6.7%.

Should I hold both RSP and VGSH?

RSP and VGSH have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RSP and VGSH?

RSP and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.

Which pays a higher dividend, RSP or VGSH?

RSP yields 1.51% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.

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