What does Invesco S&P 500® Equal Weight ETF do?

Invesco S&P 500® Equal Weight ETF (NYSE:RSP) operates as an exchange-traded fund that aims to replicate the performance of the S&P 500 Equal Weight Index. This means rather than investing in companies based on their market cap, every company in the S&P 500 index is given equal weight within the ETF's portfolio. This unique approach tends to offer diverse exposure across all sectors, potentially reducing the risk brought by overexposure to any single sector or company. Invesco S&P 500® Equal Weight ETF's main objectives include providing investors with a comprehensive, yet balanced representation of the U.S. equity market, aiming for long-term capital growth through equally weighted investments.
Invesco S&P 500® Equal Weight ETF company media

Company Snapshot

key

Ownership

Public
people

Employees

5,007
pie chart

Sector

ETF
location pin

Head Office

Atlanta, United States
founded flag

Year Founded

2003

What does Invesco S&P 500® Equal Weight ETF specialise in?

/Equal Weighting /Diversified Exposure /Risk Management /Long-term Investment /Large Cap Equities /Asset Management

What are the products and/or services of Invesco S&P 500® Equal Weight ETF?

Overview of Invesco S&P 500® Equal Weight ETF offerings
Equal-weighted exposure to the S&P 500: Unlike traditional market-cap weighted ETFs, RSP allocates an equal weight to each of the 500 companies in the S&P 500 index. This contrasts with traditional ETFs where larger companies hold a larger percentage of the fund.
Diversification across sectors: The equal weighting approach ensures that no single sector dominates the fund, offering broader diversification compared to market-cap weighted ETFs.
Potentially reduced sensitivity to large-cap swings: By not overweighting large-cap companies, RSP may be less susceptible to major fluctuations in their performance compared to market-cap weighted funds.
Potential for active management outperformance: Over long periods, the equal-weighted approach has historically outperformed market-cap weighted strategies, although past performance is not indicative of future results.
Transparency and tradability: RSP is traded on major exchanges, offering high liquidity and ease of buying and selling shares. The underlying holdings are publicly available, ensuring transparency for investors.
Access to the US stock market in a single investment: RSP provides a convenient way to gain exposure to the entire US stock market with a single investment, offering the potential for long-term growth alongside its other benefits.