How do expense ratios impact investment returns over time?

Expense ratios are annual fees that reduce net returns. In this comparison, Fund A has a 0.20% expense ratio, while Fund B charges 0.03%. The 0.17 percentage point difference means Fund B retains more of its gross return for investors. Over extended periods, even small fee differences compound, leading to noticeably different final portfolio values. Beginners should consider these costs carefully when evaluating similar index-based ETFs.

What does equal weighting versus market-cap weighting mean?

Fund A uses an equal weighting strategy, assigning the same initial weight to each of the 500 S&P 500 constituents, regardless of company size. This results in top holdings at roughly 0.31% to 0.67%. Fund B uses market-cap weighting, where weights correlate to company size, resulting in significant exposure to the largest firms. Consequently, Fund B's top three stocks alone represent over 20% of assets, whereas Fund A's largest position is only 0.67%.

What is meant by diversification in these ETFs?

Both ETFs hold 500 US large-cap stocks, providing broad diversification. However, they achieve this differently. Fund A offers balanced exposure across small and large companies within the index. Fund B concentrates heavily in the most valuable corporations. This structural difference means Fund A may provide more diversified sector or size exposure within its universe, while Fund B's diversification is weighted towards the performance of the mega-cap sector specifically.

Which fund typically has the liquidity edge?

Fund B currently provides superior liquidity with $1.08 trillion in net assets, compared to Fund A's $98.0 billion. This larger scale usually results in tighter bid-ask spreads and greater trading volume for Fund B. Fund A's $98 billion is still substantial and generally ensures competitive spreads. Investors prioritising the lowest possible transaction friction typically focus on the largest asset base for efficient trade execution.

What does the fund history tell investors?

Fund A launched on April 24, 2003, offering over two decades of history under the equal-weight strategy. Fund B was inceptioned on September 7, 2010, providing a shorter but still substantial track record of tracking the standard index. Both funds have long track records relative to most ETFs, giving investors ample historical performance data to evaluate their respective methodologies across various market conditions over more than a decade.

How concentrated are the top holdings in each fund?

Fund B exhibits significant concentration; NVDA accounts for 8.08%, AAPL 7.03%, and MSFT 5.70% of the portfolio. These three holdings alone exceed 20% of the fund. Fund A distributes risk more evenly, with its largest holding at 0.67% (MRNA) and most top ten positions between 0.29% and 0.67%. This means Fund B's performance is highly sensitive to a few mega-cap stocks, whereas Fund A is not.

How do market factors influence fund performance?

Market factors influence performance based on the weighting scheme. Fund B tends to outperform when the largest mega-cap companies, like NVDA and AAPL, are leading the market. Fund A often outperforms when mid-cap or value-oriented companies within the S&P 500 perform better than mega-caps. Because Fund A treats all constituents equally, it is less dependent on the specific performance of the index's giants.

How does sector performance impact the two funds?

Sector performance impacts the funds differently due to weighting. Fund B is heavily influenced by the Information Technology and Communication Services sectors, given its concentration in firms like NVDA, AAPL, and GOOGL. Fund A has sector weights not currently available. However, its equal weighting generally dilutes the impact of any single sector relative to the cap-weighted approach used by Fund B.

Are these ETFs easy to buy and sell?

Both ETFs are widely available through major brokerages. The trading experience may vary based on the fund's net assets and liquidity. Fund B's $1.08 trillion asset base supports extremely tight bid-ask spreads. Fund A, with $98.0 billion, also offers ample liquidity for most retail investors. You should check the current bid-ask spread on your brokerage platform before executing large orders.

Which fund has more liquidity for trading?

Fund B demonstrates unparalleled liquidity, supported by its $1.08 trillion in net assets and top holdings like NVDA and AAPL which are heavily traded individually. Fund A is also liquid with $98.0 billion in assets, but its equal-weighted structure may involve more frequent rebalancing. For large orders, Fund B's massive scale typically results in tighter bid-ask spreads and negligible trading friction.

Can these funds be combined in a portfolio?

Investors may combine both funds, though they track the same underlying universe. Fund A can complement Fund B by providing exposure to the broader 500 names equally. This mitigates the concentration in Fund B's top ten stocks, which include names like NVDA, AAPL, and MSFT. The goal would be balancing the mega-cap focus with broader participation.

How do top holding overlaps affect portfolio risk?

Based on the listed top 10 holdings, these funds do not overlap. Fund A's top position is MRNA at 0.67%, whereas Fund B's largest is NVDA at 8.08%. This distinct top holding composition means the concentration risk profiles are very different. Fund B's returns are heavily tied to its top tech names, while Fund A spreads this risk evenly across the 500 constituents.

RSP vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare Invesco S&P 500 Equal Weight ETF and Vanguard S&P 500 ETF. This page examines fees, holdings, dividends, and how each fund tracks its market, highlighting differences in expense ratios and asset composition for informed understanding. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

RSP

Metric

VOO

0.20%

Expense Ratio

0.03%

1.49%

Dividend Yield

1.03%

$98.03B

Net Assets

$1.08T

509

Holdings

516

Apr 24, 2003

Inception Date

Sep 7, 2010

–

Index Tracked

–

Large Blend

Fund Category

Large Blend

VOO costs about $17.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

RSP

Pros

RSP's 0.20% expense ratio is reasonable for a specialised active strategy.
The $98.0 billion in assets supports ample liquidity and competitive trading spreads.
An inception date of April 24, 2003, establishes a long track record.

Considerations

The higher 0.20% expense ratio compared to standard index trackers reduces net returns.
Equal weighting creates a distinct tilt toward value and mid-caps versus market cap.
Top holdings are extremely low, with the largest position at only 0.67%.

VOO

Pros

The 0.03% expense ratio represents exceptionally low costs for a core equity holding.
Net assets of $1.08 trillion provide unparalleled liquidity and negligible bid-ask spreads.
Inception in September 2010 demonstrates a substantial period of efficient index tracking.

Considerations

Market-cap weighting leads to extreme concentration in the largest mega-cap stocks.
NVDA, AAPL, and MSFT constitute over 20% of the fund's total assets.
The dividend yield of 1.03% is lower than the comparable equal-weight fund.

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About RSP and VOO

RSP (RSP)

The Invesco S&P 500 Equal Weight ETF offers investors a distinct approach to tracking the performance of large-cap US equities. Unlike traditional index funds that weight companies by market capitalisation, this fund assigns an equal weight to each constituent, typically around 0.20%. This methodology can provide greater exposure to mid-sized companies within the S&P 500 and potentially reduce concentration risk in the largest tech giants. With a modest expense ratio of 0.20% and net assets exceeding USD 98 billion, it stands as a significant vehicle for diversified equity exposure. The fund holds approximately 509 securities, reflecting the inclusion of multiple share classes. While the strategy aims to capture broad market returns, investors should remember that equal-weight portfolios may experience different volatility patterns compared to cap-weighted benchmarks, and past performance is not indicative of future results.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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RSP vs VOO

Fund Snapshot