The Invesco S&P 500 Equal Weight ETF (RSP) and the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and BIV is a Vanguard Intermediate-Term Bond fund. So, what’s the difference between RSP and BIV? And which fund is better?
The expense ratio of RSP is 0.15 percentage points higher than BIV’s (0.2% vs. 0.05%). RSP also has a high exposure to the technology sector while BIV is mostly comprised of AAA bonds. Overall, RSP has provided higher returns than BIV over the past ten years.
In this article, we’ll compare RSP vs. BIV. We’ll look at annual returns and portfolio growth, as well as at their holdings and performance. Moreover, I’ll also discuss RSP’s and BIV’s fund composition, risk metrics, and industry exposure and examine how these affect their overall returns.
Summary
| RSP | BIV | |
| Name | Invesco S&P 500 Equal Weight ETF | Vanguard Intermediate-Term Bond Index Fund ETF Shares |
| Category | Large Blend | Intermediate-Term Bond |
| Issuer | Invesco | Vanguard |
| AUM | 28.62B | 39.05B |
| Avg. Return | 13.79% | 5.31% |
| Div. Yield | 1.31% | 2.06% |
| Expense Ratio | 0.2% | 0.05% |
The Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.
RSP’s dividend yield is 0.75% lower than that of BIV (1.31% vs. 2.06%). Also, RSP yielded on average 8.47% more per year over the past decade (13.79% vs. 5.31%). The expense ratio of RSP is 0.15 percentage points higher than BIV’s (0.2% vs. 0.05%).
Fund Composition
Holdings
| RSP Holdings | Weight |
| Chipotle Mexican Grill Inc | 0.27% |
| Nike Inc Class B | 0.25% |
| MSCI Inc | 0.25% |
| Monolithic Power Systems Inc | 0.25% |
| Enphase Energy Inc | 0.25% |
| Advanced Micro Devices Inc | 0.25% |
| ResMed Inc | 0.24% |
| PerkinElmer Inc | 0.24% |
| IDEXX Laboratories Inc | 0.24% |
| Danaher Corp | 0.24% |
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
| BIV Bond Sectors | Weight |
| AAA | 54.51% |
| BBB | 25.24% |
| A | 16.97% |
| AA | 3.1% |
| Others | 0.15% |
| Below B | 0.03% |
| B | 0.0% |
| BB | 0.0% |
| US Government | 0.0% |
BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.
Risk Analysis
| RSP | BIV | |
| Mean Return | 1.19 | 0.35 |
| R-squared | 94.47 | 95.12 |
| Std. Deviation | 15.36 | 4.09 |
| Alpha | -2.45 | -0.07 |
| Beta | 1.1 | 1.33 |
| Sharpe Ratio | 0.89 | 0.89 |
| Treynor Ratio | 12.12 | 2.72 |
The Invesco S&P 500 Equal Weight ETF (RSP) has a Mean Return of 1.19 with a Sharpe Ratio of 0.89 and a Standard Deviation of 15.36. Its Beta is 1.1 while RSP’s Alpha is -2.45. Furthermore, the fund has a R-squared of 94.47 and a Treynor Ratio of 12.12.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a Mean Return of 0.35 with a Alpha of -0.07 and a Beta of 1.33. Its Standard Deviation is 4.09 while BIV’s Sharpe Ratio is 0.89. Furthermore, the fund has a Treynor Ratio of 2.72 and a R-squared of 95.12.
RSP’s Mean Return is 0.84 points higher than that of BIV and its R-squared is 0.65 points lower. With a Standard Deviation of 15.36, RSP is slightly more volatile than BIV. The Alpha and Beta of RSP are 2.38 points lower and 0.23 points lower than BIV’s Alpha and Beta.
Performance
Annual Returns
| Year | RSP | BIV |
| 2020 | 12.75% | 9.71% |
| 2019 | 28.94% | 10.19% |
| 2018 | -7.77% | -0.09% |
| 2017 | 18.52% | 3.8% |
| 2016 | 14.34% | 2.86% |
| 2015 | -2.57% | 1.23% |
| 2014 | 14.02% | 7.0% |
| 2013 | 35.6% | -3.44% |
| 2012 | 17.04% | 7.02% |
| 2011 | -0.5% | 10.62% |
| 2010 | 21.3% | 9.55% |
RSP had its best year in 2013 with an annual return of 35.6%. RSP’s worst year over the past decade yielded -7.77% and occurred in 2018. In most years the Invesco S&P 500 Equal Weight ETF provided moderate returns such as in 2014, 2016, and 2012 where annual returns amounted to 14.02%, 14.34%, and 17.04% respectively.
The year 2011 was the strongest year for BIV, returning 10.62% on an annual basis. The poorest year for BIV in the last ten years was 2013, with a yield of -3.44%. Most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 3.8%, 7.0%, and 7.02% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| RSP | $10,000 | $38,664 | 13.79% |
| BIV | $10,000 | $17,492 | 5.31% |
A $10,000 investment in RSP would have resulted in a final balance of $38,664. This is a profit of $28,664 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.79%.
With a $10,000 investment in BIV, the end total would have been $17,492. This equates to a $7,492 profit over 11 years and a compound annual growth rate (CAGR) of 5.31%.
RSP’s CAGR is 8.47 percentage points higher than that of BIV and as a result, would have yielded $21,172 more on a $10,000 investment. Thus, RSP outperformed BIV by 8.47% annually.
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