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The Invesco S&P 500 Equal Weight ETF (RSP) has grown substantially since I wrote about it in June 2023. Its assets have jumped from $37 billion at the time to over $53 billion today and inflows are increasing.
Investors seeking more diversification should look beyond the S&P 500. An equal-weight index fund will invest just as much in smaller companies as in the big names.
The S&P 500 continues to push higher on the anticipation of forthcoming interest rate cuts, but some market experts may be wary of certain names heavily concentrated in the index that are exhibiting high valuations. Either way, an equal weight approach can help reduce any market anxiety.
Invesco S&P 500 Equal Weight ETF has historically outperformed the S&P 500 due to its equal-weight methodology, but it has lagged for several years. The article provides sector metrics for RSP, also relevant for other S&P 500 ETFs, highlighting undervalued and overvalued sectors. 9 stocks cheaper than their peers in June 2024.
This year's Exchange conference in Miami brought together asset managers, advisors, and more industry leaders to talk ETFs. Perhaps no investing theme permeated the discussion as much as what to do about market concentration risk.
The Dow indexes are price weighted, making them a bit awkward when it comes to tracking companies over time. Standard S&P 500 tracking ETFs are market cap weighted, putting a lot of the fund's assets in only a small number of companies.
The Invesco S&P 500 Equal Weight ETF (RSP) made its debut on 04/24/2003, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Invesco S&P 500 Equal Weight ETF (RSP), a passively managed exchange traded fund launched on 04/24/2003.
Thanks to the strong performance of certain megacap tech companies, the S&P 500 has become rather top-heavy. The top eight S&P 500 companies account for more than 30% of the benchmark index.
The Invesco QQQ Trust ETF provides exposure to the big tech companies dominating the Nasdaq-100. Investors can access a similar fund for lower fees or diversify their investment.