RSP vs. SCHF: What’s The Difference?

The Invesco S&P 500 Equal Weight ETF (RSP) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between RSP and SCHF? And which fund is better?

The expense ratio of RSP is 0.14 percentage points higher than SCHF’s (0.2% vs. 0.06%). RSP also has a higher exposure to the technology sector and a higher standard deviation. Overall, RSP has provided higher returns than SCHF over the past ten years.

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

Summary

RSP SCHF
Name Invesco S&P 500 Equal Weight ETF Schwab International Equity ETF
Category Large Blend Foreign Large Blend
Issuer Invesco Schwab ETFs
AUM 28.62B 26.99B
Avg. Return 13.79% 6.43%
Div. Yield 1.31% 2.16%
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 Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

RSP’s dividend yield is 0.85% lower than that of SCHF (1.31% vs. 2.16%). Also, RSP yielded on average 7.36% more per year over the past decade (13.79% vs. 6.43%). The expense ratio of RSP is 0.14 percentage points higher than SCHF’s (0.2% vs. 0.06%).

Fund Composition

Industry Exposure

RSP vs. SCHF - Industry Exposure

RSP SCHF
Technology 14.73% 11.55%
Industrials 14.62% 14.86%
Energy 3.9% 4.23%
Communication Services 4.31% 5.65%
Utilities 5.58% 3.09%
Healthcare 13.69% 11.05%
Consumer Defensive 6.86% 9.41%
Real Estate 5.84% 3.17%
Financial Services 13.43% 17.85%
Consumer Cyclical 13.01% 10.87%
Basic Materials 4.04% 8.26%

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 Schwab International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

RSP is 3.18% more exposed to the Technology sector than SCHF (14.73% vs 11.55%). RSP’s exposure to Industrials and Healthcare stocks is 0.24% lower and 2.64% higher respectively (14.62% vs. 14.86% and 13.69% vs. 11.05%). In total, Basic Materials, Communication Services, and Utilities also make up 3.07% less of the fund’s holdings compared to SCHF (13.93% vs. 17.00%).

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%.

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
Samsung Electronics Co Ltd 1.6%
ASML Holding NV 1.29%
Roche Holding AG 1.24%
Toyota Motor Corp 1.02%
LVMH Moet Hennessy Louis Vuitton SE 0.93%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

Risk Analysis

RSP SCHF
Mean Return 1.19 0.58
R-squared 94.47 98.16
Std. Deviation 15.36 15.08
Alpha -2.45 0.53
Beta 1.1 0.99
Sharpe Ratio 0.89 0.42
Treynor Ratio 12.12 5.39

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 Standard Deviation of 15.36. Its Alpha is -2.45 while RSP’s R-squared is 94.47. Furthermore, the fund has a Sharpe Ratio of 0.89 and a Beta of 1.1.

The Schwab International Equity ETF (SCHF) has a Sharpe Ratio of 0.42 with a R-squared of 98.16 and a Standard Deviation of 15.08. Its Beta is 0.99 while SCHF’s Alpha is 0.53. Furthermore, the fund has a Mean Return of 0.58 and a Treynor Ratio of 5.39.

RSP’s Mean Return is 0.61 points higher than that of SCHF and its R-squared is 3.69 points lower. With a Standard Deviation of 15.36, RSP is slightly more volatile than SCHF. The Alpha and Beta of RSP are 2.98 points lower and 0.11 points higher than SCHF’s Alpha and Beta.

Performance

Annual Returns

RSP vs. SCHF - Annual Returns

Year RSP SCHF
2020 12.75% 9.86%
2019 28.94% 22.15%
2018 -7.77% -14.39%
2017 18.52% 25.83%
2016 14.34% 2.88%
2015 -2.57% -2.44%
2014 14.02% -4.44%
2013 35.6% 20.03%
2012 17.04% 17.12%
2011 -0.5% -12.32%
2010 21.3% 8.6%

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 2017 was the strongest year for SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

RSP vs. SCHF - Portfolio Growth

Fund Initial Balance Final Balance CAGR
RSP $10,000 $31,875 13.79%
SCHF $10,000 $17,089 6.43%

A $10,000 investment in RSP would have resulted in a final balance of $31,875. This is a profit of $21,875 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.79%.

With a $10,000 investment in SCHF, the end total would have been $17,089. This equates to a $7,089 profit over 10 years and a compound annual growth rate (CAGR) of 6.43%.

RSP’s CAGR is 7.36 percentage points higher than that of SCHF and as a result, would have yielded $14,786 more on a $10,000 investment. Thus, RSP outperformed SCHF by 7.36% annually.


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