The Invesco S&P 500 Equal Weight ETF (RSP) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between RSP and IVE? And which fund is better?
The expense ratio of RSP is 0.02 percentage points higher than IVE’s (0.2% vs. 0.18%). RSP also has a higher exposure to the technology sector and a higher standard deviation. Overall, RSP has provided higher returns than IVE over the past ten years.
In this article, we’ll compare RSP vs. IVE. We’ll look at performance and fund composition, as well as at their portfolio growth and industry exposure. Moreover, I’ll also discuss RSP’s and IVE’s risk metrics, annual returns, and holdings and examine how these affect their overall returns.
Summary
| RSP | IVE | |
| Name | Invesco S&P 500 Equal Weight ETF | iShares S&P 500 Value ETF |
| Category | Large Blend | Large Value |
| Issuer | Invesco | iShares |
| AUM | 28.62B | 22.4B |
| Avg. Return | 13.79% | 11.68% |
| Div. Yield | 1.31% | 1.88% |
| Expense Ratio | 0.2% | 0.18% |
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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.
RSP’s dividend yield is 0.57% lower than that of IVE (1.31% vs. 1.88%). Also, RSP yielded on average 2.10% more per year over the past decade (13.79% vs. 11.68%). The expense ratio of RSP is 0.02 percentage points higher than IVE’s (0.2% vs. 0.18%).
Fund Composition
Industry Exposure
| RSP | IVE | |
| Technology | 14.73% | 9.41% |
| Industrials | 14.62% | 12.19% |
| Energy | 3.9% | 5.43% |
| Communication Services | 4.31% | 6.4% |
| Utilities | 5.58% | 4.82% |
| Healthcare | 13.69% | 15.4% |
| Consumer Defensive | 6.86% | 9.23% |
| Real Estate | 5.84% | 4.38% |
| Financial Services | 13.43% | 22.06% |
| Consumer Cyclical | 13.01% | 7.68% |
| Basic Materials | 4.04% | 2.99% |
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 iShares S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.
IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.
RSP is 5.32% more exposed to the Technology sector than IVE (14.73% vs 9.41%). RSP’s exposure to Industrials and Healthcare stocks is 2.43% higher and 1.71% lower respectively (14.62% vs. 12.19% and 13.69% vs. 15.4%). In total, Basic Materials, Communication Services, and Utilities also make up 0.28% less of the fund’s holdings compared to IVE (13.93% vs. 14.21%).
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%.
| IVE Holdings | Weight |
| Berkshire Hathaway Inc Class B | 3.05% |
| JPMorgan Chase & Co | 2.65% |
| The Walt Disney Co | 1.85% |
| Bank of America Corp | 1.67% |
| Johnson & Johnson | 1.57% |
| Exxon Mobil Corp | 1.41% |
| Pfizer Inc | 1.38% |
| Cisco Systems Inc | 1.35% |
| Verizon Communications Inc | 1.33% |
| Intel Corp | 1.25% |
IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.
Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.
Risk Analysis
| RSP | IVE | |
| Mean Return | 1.19 | 1.05 |
| R-squared | 94.47 | 92.08 |
| Std. Deviation | 15.36 | 14.3 |
| Alpha | -2.45 | -2.9 |
| Beta | 1.1 | 1.01 |
| Sharpe Ratio | 0.89 | 0.83 |
| Treynor Ratio | 12.12 | 11.41 |
The Invesco S&P 500 Equal Weight ETF (RSP) has a Treynor Ratio of 12.12 with a Mean Return of 1.19 and a Sharpe Ratio of 0.89. Its Standard Deviation is 15.36 while RSP’s Beta is 1.1. Furthermore, the fund has a R-squared of 94.47 and a Alpha of -2.45.
The iShares S&P 500 Value ETF (IVE) has a Alpha of -2.9 with a Standard Deviation of 14.3 and a Treynor Ratio of 11.41. Its Beta is 1.01 while IVE’s Sharpe Ratio is 0.83. Furthermore, the fund has a R-squared of 92.08 and a Mean Return of 1.05.
RSP’s Mean Return is 0.14 points higher than that of IVE and its R-squared is 2.39 points higher. With a Standard Deviation of 15.36, RSP is slightly more volatile than IVE. The Alpha and Beta of RSP are 0.45 points higher and 0.09 points higher than IVE’s Alpha and Beta.
Performance
Annual Returns
| Year | RSP | IVE |
| 2020 | 12.75% | 1.24% |
| 2019 | 28.94% | 31.71% |
| 2018 | -7.77% | -9.09% |
| 2017 | 18.52% | 15.19% |
| 2016 | 14.34% | 17.17% |
| 2015 | -2.57% | -3.24% |
| 2014 | 14.02% | 12.14% |
| 2013 | 35.6% | 31.69% |
| 2012 | 17.04% | 17.45% |
| 2011 | -0.5% | -0.63% |
| 2010 | 21.3% | 14.9% |
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 IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| RSP | $10,000 | $38,664 | 13.79% |
| IVE | $10,000 | $31,350 | 11.68% |
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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.
RSP’s CAGR is 2.10 percentage points higher than that of IVE and as a result, would have yielded $7,314 more on a $10,000 investment. Thus, RSP outperformed IVE by 2.10% annually.
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