The Invesco S&P 500 Equal Weight ETF (RSP) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between RSP and IWP? And which fund is better?
The expense ratio of RSP is 0.04 percentage points lower than IWP’s (0.2% vs. 0.24%). RSP also has a lower exposure to the technology sector and a lower standard deviation. Overall, RSP has provided lower returns than IWP over the past ten years.
In this article, we’ll compare RSP vs. IWP. We’ll look at fund composition and performance, as well as at their industry exposure and risk metrics. Moreover, I’ll also discuss RSP’s and IWP’s portfolio growth, holdings, and annual returns and examine how these affect their overall returns.
Summary
| RSP | IWP | |
| Name | Invesco S&P 500 Equal Weight ETF | iShares Russell Mid-Cap Growth ETF |
| Category | Large Blend | Mid-Cap Growth |
| Issuer | Invesco | iShares |
| AUM | 28.62B | 15.7B |
| Avg. Return | 13.79% | 16.75% |
| Div. Yield | 1.31% | 0.26% |
| Expense Ratio | 0.2% | 0.24% |
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 Russell Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.
RSP’s dividend yield is 1.05% higher than that of IWP (1.31% vs. 0.26%). Also, RSP yielded on average 2.96% less per year over the past decade (13.79% vs. 16.75%). The expense ratio of RSP is 0.04 percentage points lower than IWP’s (0.2% vs. 0.24%).
Fund Composition
Industry Exposure
| RSP | IWP | |
| Technology | 14.73% | 33.88% |
| Industrials | 14.62% | 14.09% |
| Energy | 3.9% | 1.51% |
| Communication Services | 4.31% | 6.32% |
| Utilities | 5.58% | 0.16% |
| Healthcare | 13.69% | 16.79% |
| Consumer Defensive | 6.86% | 2.32% |
| Real Estate | 5.84% | 2.46% |
| Financial Services | 13.43% | 4.52% |
| Consumer Cyclical | 13.01% | 16.09% |
| Basic Materials | 4.04% | 1.86% |
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 Russell Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.
IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.
RSP is 19.15% less exposed to the Technology sector than IWP (14.73% vs 33.88%). RSP’s exposure to Industrials and Healthcare stocks is 0.53% higher and 3.10% lower respectively (14.62% vs. 14.09% and 13.69% vs. 16.79%). In total, Basic Materials, Communication Services, and Utilities also make up 5.59% more of the fund’s holdings compared to IWP (13.93% vs. 8.34%).
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%.
| IWP Holdings | Weight |
| IDEXX Laboratories Inc | 1.3% |
| DocuSign Inc | 1.3% |
| Roku Inc Class A | 1.29% |
| Match Group Inc | 1.06% |
| Chipotle Mexican Grill Inc | 1.06% |
| Pinterest Inc | 1.05% |
| Veeva Systems Inc Class A | 1.04% |
| Palantir Technologies Inc Ordinary Shares – Class A | 1.04% |
| Lululemon Athletica Inc | 1.01% |
| DexCom Inc | 1.0% |
IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.
Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.
Risk Analysis
| RSP | IWP | |
| Mean Return | 1.19 | 1.27 |
| R-squared | 94.47 | 87.01 |
| Std. Deviation | 15.36 | 16.05 |
| Alpha | -2.45 | -1.03 |
| Beta | 1.1 | 1.1 |
| Sharpe Ratio | 0.89 | 0.91 |
| Treynor Ratio | 12.12 | 12.98 |
The Invesco S&P 500 Equal Weight ETF (RSP) has a Sharpe Ratio of 0.89 with a Standard Deviation of 15.36 and a Alpha of -2.45. Its Beta is 1.1 while RSP’s R-squared is 94.47. Furthermore, the fund has a Treynor Ratio of 12.12 and a Mean Return of 1.19.
The iShares Russell Mid-Cap Growth ETF (IWP) has a Alpha of -1.03 with a Standard Deviation of 16.05 and a Beta of 1.1. Its Sharpe Ratio is 0.91 while IWP’s Mean Return is 1.27. Furthermore, the fund has a Treynor Ratio of 12.98 and a R-squared of 87.01.
RSP’s Mean Return is 0.08 points lower than that of IWP and its R-squared is 7.46 points higher. With a Standard Deviation of 15.36, RSP is slightly less volatile than IWP. The Alpha and Beta of RSP are 1.42 points lower and 0.00 points lower than IWP’s Alpha and Beta.
Performance
Annual Returns
| Year | RSP | IWP |
| 2020 | 12.75% | 35.29% |
| 2019 | 28.94% | 35.14% |
| 2018 | -7.77% | -4.95% |
| 2017 | 18.52% | 24.98% |
| 2016 | 14.34% | 7.15% |
| 2015 | -2.57% | -0.39% |
| 2014 | 14.02% | 11.68% |
| 2013 | 35.6% | 35.44% |
| 2012 | 17.04% | 15.62% |
| 2011 | -0.5% | -1.82% |
| 2010 | 21.3% | 26.1% |
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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| RSP | $10,000 | $38,664 | 13.79% |
| IWP | $10,000 | $50,191 | 16.75% |
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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.
RSP’s CAGR is 2.96 percentage points lower than that of IWP and as a result, would have yielded $11,527 less on a $10,000 investment. Thus, RSP performed worse than IWP by 2.96% annually.
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