The Invesco S&P 500 Equal Weight ETF (RSP) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between RSP and VOE? And which fund is better?
The expense ratio of RSP is 0.13 percentage points higher than VOE’s (0.2% vs. 0.07%). RSP also has a higher exposure to the technology sector and a lower standard deviation. Overall, RSP has provided higher returns than VOE over the past ten years.
In this article, we’ll compare RSP vs. VOE. We’ll look at industry exposure and holdings, as well as at their fund composition and performance. Moreover, I’ll also discuss RSP’s and VOE’s portfolio growth, risk metrics, and annual returns and examine how these affect their overall returns.
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Summary
| RSP | VOE | |
| Name | Invesco S&P 500 Equal Weight ETF | Vanguard Mid-Cap Value Index Fund ETF Shares |
| Category | Large Blend | Mid-Cap Value |
| Issuer | Invesco | Vanguard |
| AUM | 28.62B | 26.78B |
| Avg. Return | 13.79% | 12.52% |
| Div. Yield | 1.31% | 1.87% |
| Expense Ratio | 0.2% | 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 Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.
RSP’s dividend yield is 0.56% lower than that of VOE (1.31% vs. 1.87%). Also, RSP yielded on average 1.26% more per year over the past decade (13.79% vs. 12.52%). The expense ratio of RSP is 0.13 percentage points higher than VOE’s (0.2% vs. 0.07%).
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Fund Composition
Industry Exposure
| RSP | VOE | |
| Technology | 14.73% | 9.85% |
| Industrials | 14.62% | 9.4% |
| Energy | 3.9% | 5.69% |
| Communication Services | 4.31% | 5.27% |
| Utilities | 5.58% | 10.93% |
| Healthcare | 13.69% | 7.04% |
| Consumer Defensive | 6.86% | 4.85% |
| Real Estate | 5.84% | 11.48% |
| Financial Services | 13.43% | 18.26% |
| Consumer Cyclical | 13.01% | 11.8% |
| Basic Materials | 4.04% | 5.44% |
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 Mid-Cap Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.
VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.
RSP is 4.88% more exposed to the Technology sector than VOE (14.73% vs 9.85%). RSP’s exposure to Industrials and Healthcare stocks is 5.22% higher and 6.65% higher respectively (14.62% vs. 9.4% and 13.69% vs. 7.04%). In total, Basic Materials, Communication Services, and Utilities also make up 7.71% less of the fund’s holdings compared to VOE (13.93% vs. 21.64%).
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%.
| VOE Holdings | Weight |
| Carrier Global Corp Ordinary Shares | 1.28% |
| International Flavors & Fragrances Inc | 1.13% |
| Motorola Solutions Inc | 1.12% |
| Discover Financial Services | 1.09% |
| Welltower Inc | 1.05% |
| Corteva Inc | 0.99% |
| Valero Energy Corp | 0.97% |
| Corning Inc | 0.95% |
| Willis Towers Watson PLC | 0.9% |
| D.R. Horton Inc | 0.89% |
VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.
Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.
Risk Analysis
| RSP | VOE | |
| Mean Return | 1.19 | 1.05 |
| R-squared | 94.47 | 88.76 |
| Std. Deviation | 15.36 | 15.98 |
| Alpha | -2.45 | -3.77 |
| Beta | 1.1 | 1.11 |
| Sharpe Ratio | 0.89 | 0.75 |
| Treynor Ratio | 12.12 | 10.19 |
The Invesco S&P 500 Equal Weight ETF (RSP) has a R-squared of 94.47 with a Sharpe Ratio of 0.89 and a Beta of 1.1. Its Mean Return is 1.19 while RSP’s Alpha is -2.45. Furthermore, the fund has a Standard Deviation of 15.36 and a Treynor Ratio of 12.12.
The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Sharpe Ratio of 0.75 with a Standard Deviation of 15.98 and a Alpha of -3.77. Its Beta is 1.11 while VOE’s Mean Return is 1.05. Furthermore, the fund has a Treynor Ratio of 10.19 and a R-squared of 88.76.
RSP’s Mean Return is 0.14 points higher than that of VOE and its R-squared is 5.71 points higher. With a Standard Deviation of 15.36, RSP is slightly less volatile than VOE. The Alpha and Beta of RSP are 1.32 points higher and 0.01 points lower than VOE’s Alpha and Beta.
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Performance
Annual Returns
| Year | RSP | VOE |
| 2020 | 12.75% | 2.5% |
| 2019 | 28.94% | 27.98% |
| 2018 | -7.77% | -12.41% |
| 2017 | 18.52% | 17.05% |
| 2016 | 14.34% | 15.26% |
| 2015 | -2.57% | -1.8% |
| 2014 | 14.02% | 13.98% |
| 2013 | 35.6% | 37.65% |
| 2012 | 17.04% | 16.04% |
| 2011 | -0.5% | -0.32% |
| 2010 | 21.3% | 21.83% |
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 VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| RSP | $10,000 | $38,664 | 13.79% |
| VOE | $10,000 | $33,655 | 12.52% |
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 VOE, the end total would have been $33,655. This equates to a $23,655 profit over 11 years and a compound annual growth rate (CAGR) of 12.52%.
RSP’s CAGR is 1.26 percentage points higher than that of VOE and as a result, would have yielded $5,009 more on a $10,000 investment. Thus, RSP outperformed VOE by 1.26% annually.
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