The Invesco S&P 500 Equal Weight ETF (RSP) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and IUSB is a iShares N/A fund. So, what’s the difference between RSP and IUSB? And which fund is better?
The expense ratio of RSP is 0.14 percentage points higher than IUSB’s (0.2% vs. 0.06%). RSP also has a high exposure to the technology sector while IUSB is mostly comprised of AAA bonds. Overall, RSP has provided higher returns than IUSB over the past ten years.
In this article, we’ll compare RSP vs. IUSB. We’ll look at performance and fund composition, as well as at their annual returns and industry exposure. Moreover, I’ll also discuss RSP’s and IUSB’s risk metrics, portfolio growth, and holdings and examine how these affect their overall returns.
Summary
| RSP | IUSB | |
| Name | Invesco S&P 500 Equal Weight ETF | iShares Core Total USD Bond Market ETF |
| Category | Large Blend | N/A |
| Issuer | Invesco | iShares |
| AUM | 28.62B | 14.49B |
| Avg. Return | 13.79% | 4.13% |
| Div. Yield | 1.31% | 2.1% |
| Expense Ratio | 0.2% | 0.06% |
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 iShares Core Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.13% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.
RSP’s dividend yield is 0.79% lower than that of IUSB (1.31% vs. 2.1%). Also, RSP yielded on average 9.66% more per year over the past decade (13.79% vs. 4.13%). The expense ratio of RSP is 0.14 percentage points higher than IUSB’s (0.2% vs. 0.06%).
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%.
| IUSB Bond Sectors | Weight |
| AAA | 58.32% |
| BBB | 16.98% |
| A | 12.27% |
| BB | 4.33% |
| AA | 3.36% |
| B | 2.8% |
| Others | 1.01% |
| Below B | 0.92% |
| US Government | 0.0% |
IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.
Risk Analysis
| RSP | IUSB | |
| Mean Return | 1.19 | 0 |
| R-squared | 94.47 | 0 |
| Std. Deviation | 15.36 | 0 |
| Alpha | -2.45 | 0 |
| Beta | 1.1 | 0 |
| Sharpe Ratio | 0.89 | 0 |
| Treynor Ratio | 12.12 | 0 |
The Invesco S&P 500 Equal Weight ETF (RSP) has a Standard Deviation of 15.36 with a R-squared of 94.47 and a Sharpe Ratio of 0.89. Its Mean Return is 1.19 while RSP’s Beta is 1.1. Furthermore, the fund has a Treynor Ratio of 12.12 and a Alpha of -2.45.
The iShares Core Total USD Bond Market ETF (IUSB) has a Standard Deviation of 0 with a Alpha of 0 and a R-squared of 0. Its Mean Return is 0 while IUSB’s Treynor Ratio is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Beta of 0.
RSP’s Mean Return is 1.19 points higher than that of IUSB and its R-squared is 94.47 points higher. With a Standard Deviation of 15.36, RSP is slightly more volatile than IUSB. The Alpha and Beta of RSP are 2.45 points lower and 1.10 points higher than IUSB’s Alpha and Beta.
Performance
Annual Returns
| Year | RSP | IUSB |
| 2020 | 12.75% | 7.59% |
| 2019 | 28.94% | 9.26% |
| 2018 | -7.77% | -0.38% |
| 2017 | 18.52% | 4.06% |
| 2016 | 14.34% | 3.78% |
| 2015 | -2.57% | 0.46% |
| 2014 | 14.02% | 0.0% |
| 2013 | 35.6% | 0.0% |
| 2012 | 17.04% | 0.0% |
| 2011 | -0.5% | 0.0% |
| 2010 | 21.3% | 0.0% |
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 2019 was the strongest year for IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| RSP | $10,000 | $17,703 | 13.79% |
| IUSB | $10,000 | $12,704 | 4.13% |
A $10,000 investment in RSP would have resulted in a final balance of $17,703. This is a profit of $7,703 over 6 years and amounts to a compound annual growth rate (CAGR) of 13.79%.
With a $10,000 investment in IUSB, the end total would have been $12,704. This equates to a $2,704 profit over 6 years and a compound annual growth rate (CAGR) of 4.13%.
RSP’s CAGR is 9.66 percentage points higher than that of IUSB and as a result, would have yielded $4,999 more on a $10,000 investment. Thus, RSP outperformed IUSB by 9.66% annually.
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