Skip to content

RSP vs. SDY: What’s The Difference?

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

The expense ratio of RSP is 0.15 percentage points lower than SDY’s (0.2% vs. 0.35%). RSP also has a higher exposure to the technology sector and a higher standard deviation. Overall, RSP has provided higher returns than SDY over the past ten years.

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

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

RSPSDY
NameInvesco S&P 500 Equal Weight ETFSPDR S&P Dividend ETF
CategoryLarge BlendLarge Value
IssuerInvescoSPDR State Street Global Advisors
AUM28.62B19.67B
Avg. Return13.79%12.44%
Div. Yield1.31%2.65%
Expense Ratio0.2%0.35%

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 S&P Dividend ETF (SDY) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 19.67B total assets under management and has yielded an average annual return of 12.44% over the past 10 years. The fund has a dividend yield of 2.65% with an expense ratio of 0.35%.

RSP’s dividend yield is 1.34% lower than that of SDY (1.31% vs. 2.65%). Also, RSP yielded on average 1.35% more per year over the past decade (13.79% vs. 12.44%). The expense ratio of RSP is 0.15 percentage points lower than SDY’s (0.2% vs. 0.35%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Industry Exposure

RSP vs. SDY - Industry Exposure

RSPSDY
Technology14.73%2.0%
Industrials14.62%15.89%
Energy3.9%5.95%
Communication Services4.31%4.64%
Utilities5.58%12.14%
Healthcare13.69%7.35%
Consumer Defensive6.86%14.01%
Real Estate5.84%6.57%
Financial Services13.43%16.32%
Consumer Cyclical13.01%8.68%
Basic Materials4.04%6.45%

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 S&P Dividend ETF (SDY) has the most exposure to the Financial Services sector at 16.32%. This is followed by Industrials and Consumer Defensive at 15.89% and 14.01% respectively. Communication Services (4.64%), Energy (5.95%), and Basic Materials (6.45%) only make up 17.04% of the fund’s total assets.

SDY’s mid-section with moderate exposure is comprised of Real Estate, Healthcare, Consumer Cyclical, Utilities, and Consumer Defensive stocks at 6.57%, 7.35%, 8.68%, 12.14%, and 14.01%.

RSP is 12.73% more exposed to the Technology sector than SDY (14.73% vs 2.0%). RSP’s exposure to Industrials and Healthcare stocks is 1.27% lower and 6.34% higher respectively (14.62% vs. 15.89% and 13.69% vs. 7.35%). In total, Basic Materials, Communication Services, and Utilities also make up 9.30% less of the fund’s holdings compared to SDY (13.93% vs. 23.23%).

Holdings

RSP - Holdings

RSP HoldingsWeight
Chipotle Mexican Grill Inc0.27%
Nike Inc Class B0.25%
MSCI Inc0.25%
Monolithic Power Systems Inc0.25%
Enphase Energy Inc0.25%
Advanced Micro Devices Inc0.25%
ResMed Inc0.24%
PerkinElmer Inc0.24%
IDEXX Laboratories Inc0.24%
Danaher Corp0.24%

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%.

SDY - Holdings

SDY HoldingsWeight
Exxon Mobil Corp2.81%
AT&T Inc2.5%
South Jersey Industries Inc2.22%
Chevron Corp2.02%
International Business Machines Corp2.0%
AbbVie Inc1.93%
National Retail Properties Inc1.86%
Federal Realty Investment Trust1.77%
Realty Income Corp1.7%
Old Republic International Corp1.65%

SDY’s Top Holdings are Exxon Mobil Corp, AT&T Inc, South Jersey Industries Inc, Chevron Corp, and International Business Machines Corp at 2.81%, 2.5%, 2.22%, 2.02%, and 2.0%.

AbbVie Inc (1.93%), National Retail Properties Inc (1.86%), and Federal Realty Investment Trust (1.77%) have a slightly smaller but still significant weight. Realty Income Corp and Old Republic International Corp are also represented in the SDY’s holdings at 1.7% and 1.65%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

RSPSDY
Mean Return1.191.07
R-squared94.4783.62
Std. Deviation15.3612.9
Alpha-2.45-0.1
Beta1.10.87
Sharpe Ratio0.890.95
Treynor Ratio12.1213.94

The Invesco S&P 500 Equal Weight ETF (RSP) has a Standard Deviation of 15.36 with a Beta of 1.1 and a Mean Return of 1.19. Its Sharpe Ratio is 0.89 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 S&P Dividend ETF (SDY) has a R-squared of 83.62 with a Sharpe Ratio of 0.95 and a Treynor Ratio of 13.94. Its Beta is 0.87 while SDY’s Mean Return is 1.07. Furthermore, the fund has a Standard Deviation of 12.9 and a Alpha of -0.1.

RSP’s Mean Return is 0.12 points higher than that of SDY and its R-squared is 10.85 points higher. With a Standard Deviation of 15.36, RSP is slightly more volatile than SDY. The Alpha and Beta of RSP are 2.35 points lower and 0.23 points higher than SDY’s Alpha and Beta.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

RSP vs. SDY - Annual Returns

YearRSPSDY
202012.75%1.78%
201928.94%23.37%
2018-7.77%-2.73%
201718.52%15.84%
201614.34%20.17%
2015-2.57%-0.7%
201414.02%13.8%
201335.6%30.09%
201217.04%11.51%
2011-0.5%7.28%
201021.3%16.41%

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 SDY, returning 30.09% on an annual basis. The poorest year for SDY in the last ten years was 2018, with a yield of -2.73%. Most years the SPDR S&P Dividend ETF has given investors modest returns, such as in 2012, 2014, and 2017, when gains were 11.51%, 13.8%, and 15.84% respectively.

Portfolio Growth

RSP vs. SDY - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
RSP$10,000$38,66413.79%
SDY$10,000$34,80612.44%

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 SDY, the end total would have been $34,806. This equates to a $24,806 profit over 11 years and a compound annual growth rate (CAGR) of 12.44%.

RSP’s CAGR is 1.35 percentage points higher than that of SDY and as a result, would have yielded $3,858 more on a $10,000 investment. Thus, RSP outperformed SDY by 1.35% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.