RSP vs VTCIX
Invesco S&P 500 Equal Weight ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, RSP or VTCIX?
Each has led over a different period.
VTCIX has a lower expense ratio. RSP led over 1Y, VTCIX over 3Y, 5Y and the full window. RSP is less concentrated, with 2.6% of the fund in its ten largest positions against 34.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | RSP | VTCIX |
|---|---|---|
| Expense Ratio | 0.20% | 0.03%Best |
| AUM | $101.9B | $5.4B |
| Dividend Yield | 1.45% | 0.94% |
| Holdings | 1,021 | 894 |
| YTD Price Return | +15.45%Best | +9.71% |
| 1Y Price Return | +17.35%Best | +10.21% |
| 3Y Price Return (annualized) | +16.59% | +19.39%Best |
| 5Y Price Return (annualized) | +6.72% | +9.51%Best |
| Volatility (annualized) | 16.1% | 15.7%Best |
| Max Drawdown | -22.5%Best | -26.0% |
| $10,000 over 5 years | $13,843 | $15,750Best |
| Top 10 Weight | 2.6%Best | 34.8% |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 24, 2003 | Feb 24, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTCIX. Both funds are measured the same way, so the comparison holds. RSP yields 1.45% and VTCIX 0.94% on top.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2021 to Nov 10, 2026 (5 years).
RSP vs VTCIX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
RSP vs VTCIX Performance
Invesco S&P 500 Equal Weight ETF (RSP) is an ETF from Invesco (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year RSP returned +17.35% while VTCIX returned +10.21%. Year to date, RSP is up 15.45% versus a gain of 9.71% for VTCIX.
Over three years, RSP compounded at +16.59% per year against +19.39% for VTCIX; over five years the annualized figures are +6.72% and +9.51% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RSP has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.7% for VTCIX. 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 -22.5% for RSP and -26.0% for VTCIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VTCIX 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 1.45% against 0.94% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and RSP is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
94.5% of RSP's money is in holdings VTCIX also owns. 91.7% of VTCIX's money is in holdings RSP also owns.
Most of RSP is already inside VTCIX. Owning both mostly buys the same companies twice.
475 positions in common, counted across the 504 positions we hold weights for in RSP and 883 in VTCIX, against full books of 1,021 and 894.
What only one of them owns
Our book lists 284 positions for VTCIX that do not appear in our book for RSP (7.2% of the fund), and 28 for RSP that do not appear in VTCIX (5.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in RSP | Weight in VTCIX | Difference |
|---|---|---|---|
| NVDANvidia Corp | 0.19% | 7.34% | 7.15% |
| AAPLApple Inc | 0.22% | 6.52% | 6.30% |
| MSFTMicrosoft Corp | 0.22% | 5.23% | 5.01% |
| AMZNAmazon.Com Inc | 0.20% | 3.53% | 3.33% |
| GOOGLAlphabet Inc | 0.12% | 2.71% | 2.59% |
| AVGOBroadcom Inc | 0.19% | 2.42% | 2.23% |
| GOOGAlphabet Inc. C | 0.09% | 2.29% | 2.20% |
| METAMeta Platforms Inc | 0.22% | 1.78% | 1.56% |
| TSLATesla Inc | 0.20% | 1.50% | 1.30% |
| JPMJpmorgan Chase | 0.19% | 1.49% | 1.30% |
94.5% of RSP is already inside VTCIX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, RSP or VTCIX?
RSP has an expense ratio of 0.20% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, RSP or VTCIX?
Over the past year RSP returned +17.35% vs +10.21% for VTCIX, so RSP leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RSP or VTCIX?
RSP has been the more volatile fund at 16.1% annualized versus 15.7% for VTCIX. Worst drawdown: RSP -22.5% vs VTCIX -26.0%.
Should I hold both RSP and VTCIX?
RSP and VTCIX have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between RSP and VTCIX?
94.5% of RSP's money is in holdings VTCIX also owns. 91.7% of VTCIX's is in holdings RSP also owns. They hold 475 positions in common, counted across the 504 positions we hold weights for in RSP and 883 in VTCIX.
Which pays a higher dividend, RSP or VTCIX?
RSP yields 1.45% while VTCIX yields 0.94%, so RSP currently pays the higher dividend yield.
Is it better to hold VTCIX or RSP in a taxable account?
RSP is an ETF and VTCIX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTCIX better than RSP?
VTCIX has a lower expense ratio. RSP led over 1Y, VTCIX over 3Y, 5Y and the full window. RSP is less concentrated, with 2.6% of the fund in its ten largest positions against 34.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.