RSP vs. DIA: What’s The Difference?

The Invesco S&P 500 Equal Weight ETF (RSP) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between RSP and DIA? And which fund is better?

The expense ratio of RSP is 0.04 percentage points higher than DIA’s (0.2% vs. 0.16%). RSP also has a lower exposure to the technology sector and a higher standard deviation. Overall, RSP has provided higher returns than DIA over the past ten years.

In this article, we’ll compare RSP vs. DIA. We’ll look at annual returns and risk metrics, as well as at their portfolio growth and holdings. Moreover, I’ll also discuss RSP’s and DIA’s industry exposure, fund composition, and performance and examine how these affect their overall returns.

Summary

RSP DIA
Name Invesco S&P 500 Equal Weight ETF SPDR Dow Jones Industrial Average ETF Trust
Category Large Blend Large Value
Issuer Invesco SPDR State Street Global Advisors
AUM 28.62B 30.46B
Avg. Return 13.79% 13.35%
Div. Yield 1.31% 1.61%
Expense Ratio 0.2% 0.16%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

RSP’s dividend yield is 0.30% lower than that of DIA (1.31% vs. 1.61%). Also, RSP yielded on average 0.44% more per year over the past decade (13.79% vs. 13.35%). The expense ratio of RSP is 0.04 percentage points higher than DIA’s (0.2% vs. 0.16%).

Fund Composition

Industry Exposure

RSP vs. DIA - Industry Exposure

RSP DIA
Technology 14.73% 17.32%
Industrials 14.62% 16.7%
Energy 3.9% 2.0%
Communication Services 4.31% 4.42%
Utilities 5.58% 0.0%
Healthcare 13.69% 17.92%
Consumer Defensive 6.86% 6.3%
Real Estate 5.84% 0.0%
Financial Services 13.43% 20.68%
Consumer Cyclical 13.01% 13.44%
Basic Materials 4.04% 1.21%

The Invesco S&P 500 Equal Weight ETF (RSP) has the most exposure to the Technology sector at 14.73%. This is followed by Industrials and Healthcare at 14.62% and 13.69% respectively. Basic Materials (4.04%), Communication Services (4.31%), and Utilities (5.58%) only make up 13.93% of the fund’s total assets.

RSP’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Consumer Cyclical, Financial Services, and Healthcare stocks at 5.84%, 6.86%, 13.01%, 13.43%, and 13.69%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

RSP is 2.59% less exposed to the Technology sector than DIA (14.73% vs 17.32%). RSP’s exposure to Industrials and Healthcare stocks is 2.08% lower and 4.23% lower respectively (14.62% vs. 16.7% and 13.69% vs. 17.92%). In total, Basic Materials, Communication Services, and Utilities also make up 8.30% more of the fund’s holdings compared to DIA (13.93% vs. 5.63%).

Holdings

RSP - 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%.

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

Risk Analysis

RSP DIA
Mean Return 1.19 1.13
R-squared 94.47 93.31
Std. Deviation 15.36 13.68
Alpha -2.45 -0.94
Beta 1.1 0.97
Sharpe Ratio 0.89 0.94
Treynor Ratio 12.12 13.07

The Invesco S&P 500 Equal Weight ETF (RSP) has a Sharpe Ratio of 0.89 with a Beta of 1.1 and a Mean Return of 1.19. Its Standard Deviation is 15.36 while RSP’s R-squared is 94.47. Furthermore, the fund has a Treynor Ratio of 12.12 and a Alpha of -2.45.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Treynor Ratio of 13.07 with a Standard Deviation of 13.68 and a Sharpe Ratio of 0.94. Its Beta is 0.97 while DIA’s R-squared is 93.31. Furthermore, the fund has a Alpha of -0.94 and a Mean Return of 1.13.

RSP’s Mean Return is 0.06 points higher than that of DIA and its R-squared is 1.16 points higher. With a Standard Deviation of 15.36, RSP is slightly more volatile than DIA. The Alpha and Beta of RSP are 1.51 points lower and 0.13 points higher than DIA’s Alpha and Beta.

Performance

Annual Returns

RSP vs. DIA - Annual Returns

Year RSP DIA
2020 12.75% 9.63%
2019 28.94% 25.09%
2018 -7.77% -3.6%
2017 18.52% 27.97%
2016 14.34% 16.28%
2015 -2.57% 0.1%
2014 14.02% 9.88%
2013 35.6% 29.41%
2012 17.04% 10.04%
2011 -0.5% 8.21%
2010 21.3% 13.87%

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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

RSP vs. DIA - Portfolio Growth

Fund Initial Balance Final Balance CAGR
RSP $10,000 $38,664 13.79%
DIA $10,000 $37,965 13.35%

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 DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

RSP’s CAGR is 0.44 percentage points higher than that of DIA and as a result, would have yielded $699 more on a $10,000 investment. Thus, RSP outperformed DIA by 0.44% annually.


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