The RSP ETF has historically beaten the S&P 500 by equal-weighting stocks, reducing concentration in mega-cap tech names.
The Invesco S&P 500 Equal Weight ETF (RSP) has outperformed the S&P 500 for most of the past 25 years by weighting all holdings equally. Unlike the market-cap-weighted S&P 500, where top stocks like Nvidia account for nearly 8% of the index, RSP allocates roughly 0.2% to each component.
Historical data shows RSP’s strategy delivered stronger returns, though the gap narrowed recently as mega-cap tech stocks surged. The equal-weight approach reduces exposure to overvalued sectors, offering diversification benefits during market shifts.
Analysts suggest the ETF’s performance could rebound as market leadership broadens beyond dominant tech names.