Skip to content

VXUS vs. RSP: What’s The Difference?

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

The expense ratio of VXUS is 0.12 percentage points lower than RSP’s (0.08% vs. 0.2%). VXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, VXUS has provided lower returns than RSP over the past ten years.

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

VXUSRSP
NameVanguard Total International Stock Index Fund ETF SharesInvesco S&P 500 Equal Weight ETF
CategoryForeign Large BlendLarge Blend
IssuerVanguardInvesco
AUM404.73B28.62B
Avg. Return8.41%13.79%
Div. Yield2.44%1.31%
Expense Ratio0.08%0.2%

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% with an expense ratio of 0.08%.

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%.

VXUS’s dividend yield is 1.13% higher than that of RSP (2.44% vs. 1.31%). Also, VXUS yielded on average 5.38% less per year over the past decade (8.41% vs. 13.79%). The expense ratio of VXUS is 0.12 percentage points lower than RSP’s (0.08% vs. 0.2%).

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

VXUS vs. RSP - Industry Exposure

VXUSRSP
Technology13.07%14.73%
Industrials12.94%14.62%
Energy4.55%3.9%
Communication Services7.06%4.31%
Utilities2.94%5.58%
Healthcare9.19%13.69%
Consumer Defensive7.83%6.86%
Real Estate3.79%5.84%
Financial Services17.64%13.43%
Consumer Cyclical12.64%13.01%
Basic Materials8.37%4.04%

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has the most exposure to the Financial Services sector at 17.64%. This is followed by Technology and Industrials at 13.07% and 12.94% respectively. Real Estate (3.79%), Energy (4.55%), and Communication Services (7.06%) only make up 15.40% of the fund’s total assets.

VXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 7.83%, 8.37%, 9.19%, 12.64%, and 12.94%.

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%.

VXUS is 4.21% more exposed to the Financial Services sector than RSP (17.64% vs 13.43%). VXUS’s exposure to Technology and Industrials stocks is 1.66% lower and 1.68% lower respectively (13.07% vs. 14.73% and 12.94% vs. 14.62%). In total, Real Estate, Energy, and Communication Services also make up 1.35% more of the fund’s holdings compared to RSP (15.40% vs. 14.05%).

Holdings

VXUS - Holdings

VXUS HoldingsWeight
Taiwan Semiconductor Manufacturing Co Ltd1.62%
Tencent Holdings Ltd1.41%
Alibaba Group Holding Ltd Ordinary Shares1.26%
Nestle SA1.1%
Samsung Electronics Co Ltd1.05%
ASML Holding NV0.86%
Roche Holding AG0.81%
Toyota Motor Corp0.67%
LVMH Moet Hennessy Louis Vuitton SE0.61%
Novartis AG0.6%

VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.

ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.

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%.

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

VXUSRSP
Mean Return0.561.19
R-squared98.3994.47
Std. Deviation15.1215.36
Alpha0.31-2.45
Beta0.991.1
Sharpe Ratio0.40.89
Treynor Ratio5.1412.12

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has a R-squared of 98.39 with a Sharpe Ratio of 0.4 and a Treynor Ratio of 5.14. Its Standard Deviation is 15.12 while VXUS’s Mean Return is 0.56. Furthermore, the fund has a Beta of 0.99 and a Alpha of 0.31.

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

VXUS’s Mean Return is 0.63 points lower than that of RSP and its R-squared is 3.92 points higher. With a Standard Deviation of 15.12, VXUS is slightly less volatile than RSP. The Alpha and Beta of VXUS are 2.76 points higher and 0.11 points lower than RSP’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

VXUS vs. RSP - Annual Returns

YearVXUSRSP
202011.32%12.75%
201921.58%28.94%
2018-14.42%-7.77%
201727.52%18.52%
20164.72%14.34%
2015-4.28%-2.57%
2014-4.17%14.02%
201315.16%35.6%
201218.22%17.04%
20110.0%-0.5%
20100.0%21.3%

VXUS had its best year in 2017 with an annual return of 27.52%. VXUS’s worst year over the past decade yielded -14.42% and occurred in 2018. In most years the Vanguard Total International Stock Index Fund ETF Shares provided moderate returns such as in 2010, 2016, and 2020 where annual returns amounted to 0.0%, 4.72%, and 11.32% 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

VXUS vs. RSP - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VXUS$10,000$19,3158.41%
RSP$10,000$32,03513.79%

A $10,000 investment in VXUS would have resulted in a final balance of $19,315. This is a profit of $9,315 over 9 years and amounts to a compound annual growth rate (CAGR) of 8.41%.

With a $10,000 investment in RSP, the end total would have been $32,035. This equates to a $22,035 profit over 9 years and a compound annual growth rate (CAGR) of 13.79%.

VXUS’s CAGR is 5.38 percentage points lower than that of RSP and as a result, would have yielded $12,720 less on a $10,000 investment. Thus, VXUS performed worse than RSP by 5.38% 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.