RSP vs VTBNX
Invesco S&P 500 Equal Weight ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. RSP delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | RSP | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.02% | |
| AUM | $100.1B | $207.3B | |
| Dividend Yield | 1.49% | 3.79% | |
| Holdings | 511 | 15,623 | |
| YTD Return | +15.88% | -2.70% | |
| 1Y Return | +21.24% | -1.68% | |
| 3Y Return (annualized) | +16.53% | +0.65% | |
| 5Y Return (annualized) | +9.22% | -3.62% | |
| Volatility (annualized) | 16.5% | 6.3% | |
| Max Drawdown | -60.9% | -21.5% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Apr 24, 2003 | Feb 17, 2009 |
RSP vs VTBNX Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year RSP returned +21.24% while VTBNX returned -1.68%. Year to date, RSP is up 15.88% versus a loss of 2.70% for VTBNX.
Over three years, RSP compounded at +16.53% per year against +0.65% for VTBNX; over five years the annualized figures are +9.22% and -3.62% respectively. Across the full 5-year window we track, RSP has the edge at +10.12% annualized vs -3.62%. 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 6.3% for VTBNX. 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 -21.5% for VTBNX. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RSP charges 0.20% per year while VTBNX charges 0.02%. On a $10,000 position that is $20 vs $2 annually, a gap of $18 per year that compounds over a long holding period. On income, RSP currently yields 1.49% against 3.79% for VTBNX.
Holdings Overlap
RSP and VTBNX share 7 holdings out of 13154 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 VTBNX?
RSP has an expense ratio of 0.20% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, RSP or VTBNX?
Over the past year RSP returned +21.24% vs -1.68% for VTBNX, so RSP leads on 1-year performance. Over the longest common window we track (5 years), RSP annualized +10.12% vs -3.62% for VTBNX. Past performance does not guarantee future results.
Which is riskier, RSP or VTBNX?
RSP has been the more volatile fund at 16.5% annualized versus 6.3% for VTBNX. Worst drawdown: RSP -60.9% vs VTBNX -21.5%.
Should I hold both RSP and VTBNX?
RSP and VTBNX have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RSP and VTBNX?
RSP and VTBNX share 7 common holdings with a 0.0% weight overlap. Combined, they hold 13154 unique securities.
Which pays a higher dividend, RSP or VTBNX?
RSP yields 1.49% while VTBNX yields 3.79%, so VTBNX currently pays the higher dividend yield.
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