RSP vs VWO
Invesco S&P 500 Equal Weight ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. RSP delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | RSP | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $100.1B | $122.0B | |
| Dividend Yield | 1.49% | 2.39% | |
| Holdings | 511 | 6,334 | |
| YTD Return | +15.88% | +10.18% | |
| 1Y Return | +21.24% | +20.99% | |
| 3Y Return (annualized) | +16.53% | +18.45% | |
| 5Y Return (annualized) | +9.22% | +7.14% | |
| Volatility (annualized) | 16.5% | 20.1% | |
| Max Drawdown | -60.9% | -68.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 24, 2003 | Mar 4, 2005 |
RSP vs VWO Performance
Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year RSP returned +21.24% while VWO returned +20.99%. Year to date, RSP is up 15.88% versus a gain of 10.18% for VWO.
Over three years, RSP compounded at +16.53% per year against +18.45% for VWO; over five years the annualized figures are +9.22% and +7.14% respectively. Across the full 21-year window we track, RSP has the edge at +10.12% annualized vs +4.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 16.5% for RSP. 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 -68.3% for VWO. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RSP charges 0.20% per year while VWO charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, RSP currently yields 1.49% against 2.39% for VWO.
Holdings Overlap
RSP and VWO share 0 holdings out of 4417 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 VWO?
RSP has an expense ratio of 0.20% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, RSP or VWO?
Over the past year RSP returned +21.24% vs +20.99% for VWO, so RSP leads on 1-year performance. Over the longest common window we track (21 years), RSP annualized +10.12% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, RSP or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.5% for RSP. Worst drawdown: RSP -60.9% vs VWO -68.3%.
Should I hold both RSP and VWO?
RSP and VWO have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RSP and VWO?
RSP and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4417 unique securities.
Which pays a higher dividend, RSP or VWO?
RSP yields 1.49% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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