RSP vs VMLUX

Quick Verdict

VMLUX has a lower expense ratio. RSP delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.

Lower Fees: VMLUXHigher Returns: RSPMore Diversified: VMLUX

Side-by-Side Comparison

MetricRSPVMLUXWinner
Expense Ratio0.20%0.09%
AUM$97.4B$34.1B
Dividend Yield1.51%2.89%
Holdings5107,110
YTD Return+15.37%-0.64%
1Y Return+22.88%-0.36%
3Y Return (annualized)+15.20%+0.77%
5Y Return (annualized)+8.99%-0.58%
Volatility (annualized)16.5%2.8%
Max Drawdown-60.9%-8.5%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityTax Preferred
InceptionApr 24, 2003Feb 12, 2001

RSP vs VMLUX Performance

Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year RSP returned +22.88% while VMLUX returned -0.36%. Year to date, RSP is up 15.37% versus a loss of 0.64% for VMLUX.

Over three years, RSP compounded at +15.20% per year against +0.77% for VMLUX; over five years the annualized figures are +8.99% and -0.58% respectively. Across the full 5-year window we track, RSP has the edge at +10.11% annualized vs -0.58%. 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 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RSP charges 0.20% per year while VMLUX charges 0.09%. On a $10,000 position that is $20 vs $9 annually, a gap of $11 per year that compounds over a long holding period. On income, RSP currently yields 1.51% against 2.89% for VMLUX.

Holdings Overlap

0.0%overlap

RSP and VMLUX share 0 holdings out of 1348 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 VMLUX?

RSP has an expense ratio of 0.20% while VMLUX charges 0.09%. VMLUX is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, RSP or VMLUX?

Over the past year RSP returned +22.88% vs -0.36% for VMLUX, so RSP leads on 1-year performance. Over the longest common window we track (5 years), RSP annualized +10.11% vs -0.58% for VMLUX. Past performance does not guarantee future results.

Which is riskier, RSP or VMLUX?

RSP has been the more volatile fund at 16.5% annualized versus 2.8% for VMLUX. Worst drawdown: RSP -60.9% vs VMLUX -8.5%.

Should I hold both RSP and VMLUX?

RSP and VMLUX have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RSP and VMLUX?

RSP and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1348 unique securities.

Which pays a higher dividend, RSP or VMLUX?

RSP yields 1.51% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.

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