RSP vs VTIP
Invesco S&P 500 Equal Weight ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. RSP delivered stronger 1-year returns. RSP offers more diversification with 511 holdings.
Side-by-Side Comparison
| Metric | RSP | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $100.1B | $19.8B | |
| Dividend Yield | 1.49% | 4.16% | |
| Holdings | 511 | 25 | |
| YTD Return | +15.37% | +1.83% | |
| 1Y Return | +18.85% | +2.16% | |
| 3Y Return (annualized) | +15.50% | +5.39% | |
| 5Y Return (annualized) | +8.87% | +3.26% | |
| Volatility (annualized) | 16.5% | 2.4% | |
| Max Drawdown | -60.9% | -7.1% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Apr 24, 2003 | Oct 12, 2012 |
RSP vs VTIP Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year RSP returned +18.85% while VTIP returned +2.16%. Year to date, RSP is up 15.37% versus a gain of 1.83% for VTIP.
Over three years, RSP compounded at +15.50% per year against +5.39% for VTIP; over five years the annualized figures are +8.87% and +3.26% respectively. Across the full 14-year window we track, RSP has the edge at +10.09% annualized vs +1.57%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RSP charges 0.20% per year while VTIP 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 1.49% against 4.16% for VTIP.
Holdings Overlap
RSP and VTIP share 0 holdings out of 456 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 VTIP?
RSP has an expense ratio of 0.20% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, RSP or VTIP?
Over the past year RSP returned +18.85% vs +2.16% for VTIP, so RSP leads on 1-year performance. Over the longest common window we track (14 years), RSP annualized +10.09% vs +1.57% for VTIP. Past performance does not guarantee future results.
Which is riskier, RSP or VTIP?
RSP has been the more volatile fund at 16.5% annualized versus 2.4% for VTIP. Worst drawdown: RSP -60.9% vs VTIP -7.1%.
Should I hold both RSP and VTIP?
RSP and VTIP have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RSP and VTIP?
RSP and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 456 unique securities.
Which pays a higher dividend, RSP or VTIP?
RSP yields 1.49% while VTIP yields 4.16%, so VTIP currently pays the higher dividend yield.
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