RSP vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricRSPSPYWinner
Expense Ratio0.20%0.09%
AUM$97.4B$789.1B
Dividend Yield1.51%1.01%
Holdings510505
YTD Return+12.40%+9.93%
1Y Return+19.03%+19.50%
3Y Return (annualized)+13.43%+19.33%
5Y Return (annualized)+8.85%+12.82%
Volatility (annualized)16.6%15.3%
Max Drawdown-60.9%-56.5%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionApr 24, 2003Jan 22, 1993

RSP vs SPY Performance

Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RSP returned +19.03% while SPY returned +19.50%. Year to date, RSP is up 12.40% versus a gain of 9.93% for SPY.

Over three years, RSP compounded at +13.43% per year against +19.33% for SPY; over five years the annualized figures are +8.85% and +12.82% respectively. Across the full 23-year window we track, RSP has the edge at +10.00% annualized vs +8.74%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RSP has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.95. 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 SPY charges 0.09%. On a $10,000 position that is $20 vs $9 annually, a gap of $11 per year that compounds over a long holding period. On income, RSP currently yields 1.51% against 1.01% for SPY.

Holdings Overlap

37.4%overlap

RSP and SPY share 423 holdings out of 513 unique holdings combined, representing a 37.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RSPWeight in SPYDifference
NVDA0.19%7.31%7.12%
AAPL0.19%7.09%6.90%
MSFT0.18%4.43%4.25%
GOOGLProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
MUProProPro
LLYProProPro
See all 10 holdings RSP shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, RSP or SPY?

RSP has an expense ratio of 0.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, RSP or SPY?

Over the past year RSP returned +19.03% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), RSP annualized +10.00% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, RSP or SPY?

RSP has been the more volatile fund at 16.6% annualized versus 15.3% for SPY. Worst drawdown: RSP -60.9% vs SPY -56.5%.

Should I hold both RSP and SPY?

RSP and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between RSP and SPY?

RSP and SPY share 423 common holdings with a 37.4% weight overlap. Combined, they hold 513 unique securities.

Which pays a higher dividend, RSP or SPY?

RSP yields 1.51% while SPY yields 1.01%, so RSP currently pays the higher dividend yield.

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