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?
VTCIX has been ahead.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91.
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 | $99.6B | $5.2B |
| Dividend Yield | 1.46% | 0.90% |
| Holdings | 511 | 836 |
| YTD Price Return | +11.41% | +11.60%Best |
| 1Y Price Return | +12.89% | +15.87%Best |
| 3Y Price Return (annualized) | +13.32% | +19.44%Best |
| 5Y Price Return (annualized) | +6.84% | +11.04%Best |
| Volatility (annualized) | 16.0% | 15.9%Best |
| Max Drawdown | -22.5%Best | -26.0% |
| $10,000 over 5 years | $13,921 | $16,881Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 24, 2003 | Feb 24, 1999 |
Not shown on this pair: Top 10 Weight.
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 1.46% and VTCIX 0.90% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 14, 2021 to Sep 11, 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 +12.89% while VTCIX returned +15.87%. Year to date, RSP is up 11.41% versus a gain of 11.60% for VTCIX.
Over three years, RSP compounded at +13.32% per year against +19.44% for VTCIX; over five years the annualized figures are +6.84% and +11.04% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RSP has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 15.9% 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
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 1.46% against 0.90% 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
At least 77.9% of VTCIX's money is in holdings RSP also owns.
Stated as a floor: for RSP, our book for it covers 91.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of VTCIX is already inside RSP. Owning both mostly buys the same companies twice.
436 positions in common, counted across the 463 positions we hold weights for in RSP and 884 in VTCIX, against full books of 511 and 836.
Top Shared Holdings
| Stock | Weight in RSP | Weight in VTCIX | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 0.20% | 6.77% | 6.57% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 0.23% | 3.91% | 3.68% |
| AMZNAmazon.Com Inc | 0.22% | 3.30% | 3.08% |
| GOOGLAlphabet A Usd 0.001 | 0.11% | 2.90% | 2.79% |
| AVGOBroadcom Inc | 0.21% | 2.51% | 2.30% |
| GOOGAlphabet Inc | 0.09% | 2.45% | 2.36% |
| MUMicron Technology, Inc. | 0.19% | 1.84% | 1.65% |
| METAMeta Platforms, Inc. | 0.19% | 1.79% | 1.60% |
| TSLATesla Inc | 0.16% | 1.75% | 1.59% |
| LLYEli Lilly & Co. | 0.18% | 1.40% | 1.22% |
77.9% of VTCIX is already inside RSP.
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 +12.89% vs +15.87% for VTCIX, so VTCIX 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 16.0% annualized versus 15.9% 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 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between RSP and VTCIX?
At least 77.9% of VTCIX's money is in holdings RSP also owns. Our book for RSP is partial, so the real figure is this or higher. They hold 436 positions in common, counted across the 463 positions we hold weights for in RSP and 884 in VTCIX.
Which pays a higher dividend, RSP or VTCIX?
RSP yields 1.46% while VTCIX yields 0.90%, 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. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.