The Invesco S&P 500 Equal Weight ETF (RSP) has gained 9.93% in 2026, surpassing the cap-weighted SPY amid mega-cap tech weakness.
The Invesco S&P 500 Equal Weight ETF (RSP) has outperformed the SPDR S&P 500 ETF Trust (SPY) by roughly 2.4 percentage points year-to-date, gaining 9.93% compared to SPY’s 7.58%. RSP holds the same 500 stocks as SPY but reduces exposure to the Magnificent Seven from one-third to 1.4%, mitigating concentration risk.
In 2023, RSP trailed SPY by over 10 percentage points as mega-cap tech drove nearly all index gains. The shift in 2026 highlights the regime dependence of cap-weighted strategies, where a handful of $3 trillion companies dominate performance. SPY’s heavy allocation to these names has become a drag as their momentum stalls.
RSP charges 0.20% annually, matching SPY’s cost while offering broader diversification. The equal-weight approach ensures no single stock exceeds 0.2% of the portfolio, reducing volatility tied to individual names.