RSP Vs SPY: The Critical Differences of the Two ETFs Analyzed

Investing your hard-earned money may be the best way to reach your financial goals. But investing can be very tricky and challenging.

RSP Vs SPY – Overview

The SPDR S&P 500 ETF Trust (SPY) and Invesco S&P 500 Equal Weight ETF (RSP) are two of the most popular funds. While both of them have S&P in their names, they have many similarities and differences.

RSP: Invesco S&P 500 Equal Weight ETF

The Invesco S&P 500 Equal Weight ETF or RSP is one of the most popular ETFs. The fund seeks to copy the performance of the S&P 500 index.

SPY: SPDR S&P 500 ETF Trust

The SPDR S&P 500 ETF Trust is a fund that is traded in the exchange using the NYSE Arca name SPY. The SPDR acronym stands for the Standard and Poor Depository Receipt.

RSP Vs. SPY: Key Differences

RSP has the aim of tracking the S&P 500 Equal Weighted Average. The S&P 500 investment of SPY depends on the stock’s market capitalization.

RSP Vs. SPY: Composition Differences

Both RSP and SPY are US Stocks large blend funds. However, as the weighting is different, the top 10 holdings in RSP are 2.47% of the fund, while the top 10 holdings in SPY consist of 26.78% of the fund.

RSP Vs. SPY: Performance Differences

When there is a down market, RSP has a poorer performance. This is an indication that SPY is less volatile as compared to RSP.

RSP Vs. SPY: Fees

At 0.20%, the expense ratio of RSP is higher than that of SPY, which is 0.09%. That means for every investment of $10,000, RSP investors are charged $20 a year. On the other hand, SPY investors are charged $9 a year.

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