Skip to content

RSP vs. VBK: What’s The Difference?

The Invesco S&P 500 Equal Weight ETF (RSP) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and VBK is a Vanguard Small Growth fund. So, what’s the difference between RSP and VBK? And which fund is better?

The expense ratio of RSP is 0.13 percentage points higher than VBK’s (0.2% vs. 0.07%). RSP also has a lower exposure to the technology sector and a lower standard deviation. Overall, RSP has provided lower returns than VBK over the past ten years.

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

RSPVBK
NameInvesco S&P 500 Equal Weight ETFVanguard Small-Cap Growth Index Fund ETF Shares
CategoryLarge BlendSmall Growth
IssuerInvescoVanguard
AUM28.62B37.89B
Avg. Return13.79%16.53%
Div. Yield1.31%0.45%
Expense Ratio0.2%0.07%

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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is a Small Growth fund that is issued by Vanguard. It currently has 37.89B total assets under management and has yielded an average annual return of 16.53% over the past 10 years. The fund has a dividend yield of 0.45% with an expense ratio of 0.07%.

RSP’s dividend yield is 0.86% higher than that of VBK (1.31% vs. 0.45%). Also, RSP yielded on average 2.74% less per year over the past decade (13.79% vs. 16.53%). The expense ratio of RSP is 0.13 percentage points higher than VBK’s (0.2% vs. 0.07%).

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. VBK - Industry Exposure

RSPVBK
Technology14.73%27.87%
Industrials14.62%13.19%
Energy3.9%1.77%
Communication Services4.31%3.24%
Utilities5.58%0.32%
Healthcare13.69%23.24%
Consumer Defensive6.86%3.83%
Real Estate5.84%7.87%
Financial Services13.43%4.05%
Consumer Cyclical13.01%12.13%
Basic Materials4.04%2.49%

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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has the most exposure to the Technology sector at 27.87%. This is followed by Healthcare and Industrials at 23.24% and 13.19% respectively. Energy (1.77%), Basic Materials (2.49%), and Communication Services (3.24%) only make up 7.50% of the fund’s total assets.

VBK’s mid-section with moderate exposure is comprised of Consumer Defensive, Financial Services, Real Estate, Consumer Cyclical, and Industrials stocks at 3.83%, 4.05%, 7.87%, 12.13%, and 13.19%.

RSP is 13.14% less exposed to the Technology sector than VBK (14.73% vs 27.87%). RSP’s exposure to Industrials and Healthcare stocks is 1.43% higher and 9.55% lower respectively (14.62% vs. 13.19% and 13.69% vs. 23.24%). In total, Basic Materials, Communication Services, and Utilities also make up 7.88% more of the fund’s holdings compared to VBK (13.93% vs. 6.05%).

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%.

VBK - Holdings

VBK HoldingsWeight
Charles River Laboratories International Inc0.78%
Pool Corp0.73%
Bio-Techne Corp0.73%
Avantor Inc0.73%
PerkinElmer Inc0.72%
Entegris Inc0.7%
PTC Inc0.62%
Fair Isaac Corp0.57%
Bill.com Holdings Inc Ordinary Shares0.56%
Avalara Inc0.55%

VBK’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.78%, 0.73%, 0.73%, 0.73%, and 0.72%.

Entegris Inc (0.7%), PTC Inc (0.62%), and Fair Isaac Corp (0.57%) have a slightly smaller but still significant weight. Bill.com Holdings Inc Ordinary Shares and Avalara Inc are also represented in the VBK’s holdings at 0.56% and 0.55%.

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

RSPVBK
Mean Return1.191.22
R-squared94.4780.56
Std. Deviation15.3617.95
Alpha-2.45-2.81
Beta1.11.18
Sharpe Ratio0.890.78
Treynor Ratio12.1211.18

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 Treynor Ratio is 12.12. Furthermore, the fund has a R-squared of 94.47 and a Mean Return of 1.19.

The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has a Standard Deviation of 17.95 with a Beta of 1.18 and a R-squared of 80.56. Its Mean Return is 1.22 while VBK’s Alpha is -2.81. Furthermore, the fund has a Treynor Ratio of 11.18 and a Sharpe Ratio of 0.78.

RSP’s Mean Return is 0.03 points lower than that of VBK and its R-squared is 13.91 points higher. With a Standard Deviation of 15.36, RSP is slightly less volatile than VBK. The Alpha and Beta of RSP are 0.36 points higher and 0.08 points lower than VBK’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. VBK - Annual Returns

YearRSPVBK
202012.75%35.29%
201928.94%32.75%
2018-7.77%-5.68%
201718.52%21.9%
201614.34%10.74%
2015-2.57%-2.51%
201414.02%4.02%
201335.6%38.18%
201217.04%17.67%
2011-0.5%-1.43%
201021.3%30.87%

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 VBK, returning 38.18% on an annual basis. The poorest year for VBK in the last ten years was 2018, with a yield of -5.68%. Most years the Vanguard Small-Cap Growth Index Fund ETF Shares has given investors modest returns, such as in 2016, 2012, and 2017, when gains were 10.74%, 17.67%, and 21.9% respectively.

Portfolio Growth

RSP vs. VBK - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
RSP$10,000$38,66413.79%
VBK$10,000$48,63916.53%

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 VBK, the end total would have been $48,639. This equates to a $38,639 profit over 11 years and a compound annual growth rate (CAGR) of 16.53%.

RSP’s CAGR is 2.74 percentage points lower than that of VBK and as a result, would have yielded $9,975 less on a $10,000 investment. Thus, RSP performed worse than VBK by 2.74% 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.