SCHX vs. RSP: What’s The Difference?

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

The expense ratio of SCHX is 0.17 percentage points lower than RSP’s (0.03% vs. 0.2%). SCHX also has a higher exposure to the technology sector and a lower standard deviation. Overall, SCHX has provided higher returns than RSP over the past ten years.

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

Summary

SCHX RSP
Name Schwab U.S. Large-Cap ETF Invesco S&P 500 Equal Weight ETF
Category Large Blend Large Blend
Issuer Schwab ETFs Invesco
AUM 30.89B 28.62B
Avg. Return 14.60% 13.79%
Div. Yield 1.41% 1.31%
Expense Ratio 0.03% 0.2%

The Schwab U.S. Large-Cap ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.

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%.

SCHX’s dividend yield is 0.10% higher than that of RSP (1.41% vs. 1.31%). Also, SCHX yielded on average 0.81% more per year over the past decade (14.60% vs. 13.79%). The expense ratio of SCHX is 0.17 percentage points lower than RSP’s (0.03% vs. 0.2%).

Fund Composition

Industry Exposure

SCHX vs. RSP - Industry Exposure

SCHX RSP
Technology 25.13% 14.73%
Industrials 8.65% 14.62%
Energy 2.72% 3.9%
Communication Services 11.26% 4.31%
Utilities 2.37% 5.58%
Healthcare 13.04% 13.69%
Consumer Defensive 5.97% 6.86%
Real Estate 3.13% 5.84%
Financial Services 13.82% 13.43%
Consumer Cyclical 11.63% 13.01%
Basic Materials 2.28% 4.04%

The Schwab U.S. Large-Cap ETF (SCHX) has the most exposure to the Technology sector at 25.13%. This is followed by Financial Services and Healthcare at 13.82% and 13.04% respectively. Utilities (2.37%), Energy (2.72%), and Real Estate (3.13%) only make up 8.22% of the fund’s total assets.

SCHX’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.97%, 8.65%, 11.26%, 11.63%, and 13.04%.

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%.

SCHX is 10.40% more exposed to the Technology sector than RSP (25.13% vs 14.73%). SCHX’s exposure to Financial Services and Healthcare stocks is 0.39% higher and 0.65% lower respectively (13.82% vs. 13.43% and 13.04% vs. 13.69%). In total, Utilities, Energy, and Real Estate also make up 7.10% less of the fund’s holdings compared to RSP (8.22% vs. 15.32%).

Holdings

SCHX - Holdings

SCHX Holdings Weight
Apple Inc 5.37%
Microsoft Corp 5.1%
Amazon.com Inc 3.69%
Facebook Inc A 2.08%
Alphabet Inc A 1.84%
Alphabet Inc Class C 1.78%
Berkshire Hathaway Inc Class B 1.32%
Tesla Inc 1.31%
NVIDIA Corp 1.25%
JPMorgan Chase & Co 1.18%

SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.

Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.

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%.

Risk Analysis

SCHX RSP
Mean Return 1.24 1.19
R-squared 99.83 94.47
Std. Deviation 13.8 15.36
Alpha -0.14 -2.45
Beta 1.02 1.1
Sharpe Ratio 1.03 0.89
Treynor Ratio 14.06 12.12

The Schwab U.S. Large-Cap ETF (SCHX) has a Mean Return of 1.24 with a Sharpe Ratio of 1.03 and a R-squared of 99.83. Its Treynor Ratio is 14.06 while SCHX’s Alpha is -0.14. Furthermore, the fund has a Beta of 1.02 and a Standard Deviation of 13.8.

The Invesco S&P 500 Equal Weight ETF (RSP) has a Standard Deviation of 15.36 with a Alpha of -2.45 and a Mean Return of 1.19. Its R-squared is 94.47 while RSP’s Treynor Ratio is 12.12. Furthermore, the fund has a Sharpe Ratio of 0.89 and a Beta of 1.1.

SCHX’s Mean Return is 0.05 points higher than that of RSP and its R-squared is 5.36 points higher. With a Standard Deviation of 13.8, SCHX is slightly less volatile than RSP. The Alpha and Beta of SCHX are 2.31 points higher and 0.08 points lower than RSP’s Alpha and Beta.

Performance

Annual Returns

SCHX vs. RSP - Annual Returns

Year SCHX RSP
2020 20.9% 12.75%
2019 31.4% 28.94%
2018 -4.52% -7.77%
2017 21.91% 18.52%
2016 11.78% 14.34%
2015 1.02% -2.57%
2014 13.33% 14.02%
2013 32.54% 35.6%
2012 16.06% 17.04%
2011 1.61% -0.5%
2010 15.88% 21.3%

SCHX had its best year in 2013 with an annual return of 32.54%. SCHX’s worst year over the past decade yielded -4.52% and occurred in 2018. In most years the Schwab U.S. Large-Cap ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.33%, 15.88%, and 16.06% respectively.

The year 2013 was the strongest year for RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% respectively.

Portfolio Growth

SCHX vs. RSP - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHX $10,000 $36,987 14.60%
RSP $10,000 $31,875 13.79%

A $10,000 investment in SCHX would have resulted in a final balance of $36,987. This is a profit of $26,987 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.60%.

With a $10,000 investment in RSP, the end total would have been $31,875. This equates to a $21,875 profit over 10 years and a compound annual growth rate (CAGR) of 13.79%.

SCHX’s CAGR is 0.81 percentage points higher than that of RSP and as a result, would have yielded $5,112 more on a $10,000 investment. Thus, SCHX outperformed RSP by 0.81% annually.


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