RSP vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricRSPVYMWinner
Expense Ratio0.20%0.04%
AUM$97.4B$79.0B
Dividend Yield1.51%2.86%
Holdings510568
YTD Return+12.40%+13.24%
1Y Return+19.03%+23.76%
3Y Return (annualized)+13.43%+16.97%
5Y Return (annualized)+8.85%+12.26%
Volatility (annualized)16.6%14.6%
Max Drawdown-60.9%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 24, 2003Nov 10, 2006

RSP vs VYM Performance

Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RSP returned +19.03% while VYM returned +23.76%. Year to date, RSP is up 12.40% versus a gain of 13.24% for VYM.

Over three years, RSP compounded at +13.43% per year against +16.97% for VYM; over five years the annualized figures are +8.85% and +12.26% respectively. Across the full 20-year window we track, RSP has the edge at +10.00% annualized vs +6.96%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.94. 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 VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, RSP currently yields 1.51% against 2.86% for VYM.

Holdings Overlap

27.6%overlap

RSP and VYM share 190 holdings out of 801 unique holdings combined, representing a 27.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RSPWeight in VYMDifference
AVGO0.19%6.47%6.28%
JPM0.21%3.36%3.15%
XOM0.17%2.83%2.66%
JNJProProPro
WMTProProPro
ABBVProProPro
PGProProPro
HDProProPro
CATProProPro
CVXProProPro
See all 10 holdings RSP shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, RSP or VYM?

RSP has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, RSP or VYM?

Over the past year RSP returned +19.03% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), RSP annualized +10.00% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, RSP or VYM?

RSP has been the more volatile fund at 16.6% annualized versus 14.6% for VYM. Worst drawdown: RSP -60.9% vs VYM -58.8%.

Should I hold both RSP and VYM?

RSP and VYM have a monthly-return correlation of 0.94, 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 VYM?

RSP and VYM share 190 common holdings with a 27.6% weight overlap. Combined, they hold 801 unique securities.

Which pays a higher dividend, RSP or VYM?

RSP yields 1.51% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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