The RSP vs SPY comparison turned in 2026. The Invesco S&P 500 Equal Weight ETF (RSP) returned 12.03% at net asset value in the first half of 2026, ahead of the 10.13% return of the SPDR S&P 500 ETF Trust (SPY) and the 10.21% return of the cap-weighted S&P 500 Index [1][2]. Over one year to June 30, 2026, however, SPY still led by a wide margin, 22.15% to 18.93%, and over ten years the cap-weighted fund earned 15.35% a year against 12.14% for RSP [1][2]. The equal-weight approach buys diversification at the cost of lower returns whenever the largest stocks lead.
How equal weight changes the S&P 500
Both funds hold the same roughly 500 companies. The difference is the weight assigned to each. In the cap-weighted S&P 500, the 100 largest companies were 75% of the index as of June 30, 2026, companies ranked 101 to 200 were 12%, 201 to 300 were 7%, 301 to 400 were 4% and the smallest 105 were 2% [1]. In the equal-weight version each group of 100 is 20% [1]. SPY's ten largest holdings, led by Nvidia (NVDA) at 7.50% and Apple (AAPL) at 6.57%, were 36.31% of the fund, and information technology alone was 38.03% [2]. In RSP each stock starts each rebalance at about 0.2%, so no single company can dominate.
That structure gives RSP a built-in tilt toward mid-sized companies within the index and toward sectors with more constituents rather than more market value. It also means RSP must trade at every scheduled rebalance to reset weights, selling recent winners and buying laggards, while SPY rarely trades at all.
RSP vs SPY performance to June 30, 2026
| Period | RSP (NAV) | S&P 500 Equal Weight Index | SPY (NAV) | S&P 500 Index |
|---|---|---|---|---|
| Year to date | 12.03% | 12.13% | 10.13% | 10.21% |
| 1 year | 18.93% | 19.20% | 22.15% | 22.32% |
| 3 years (annualized) | 14.32% | 14.53% | 20.46% | 20.61% |
| 5 years (annualized) | 8.92% | 9.14% | 13.26% | 13.41% |
| 10 years (annualized) | 12.14% | 12.36% | 15.35% | 15.51% |
Data: Invesco and State Street fact sheets, periods ended June 30, 2026 [1][2].
The three-year gap is the striking number: 20.46% a year for SPY against 14.32% for RSP, a difference of more than six percentage points a year [1][2]. That period covers the run in a handful of very large technology companies, and it is exactly the environment in which equal weighting underperforms. Since RSP's April 24, 2003 inception the two approaches are much closer: the equal-weight index returned 11.76% a year and the S&P 500 11.61% [1].
Rolling-period evidence
Invesco reports that the S&P 500 Equal Weight Index beat the cap-weighted S&P 500 in 49% of rolling three-year monthly periods, 50% of five-year periods and 51% of ten-year periods between January 31, 2003 and June 30, 2026 [1]. In plain terms, the two methods have traded the lead about half the time over more than two decades, and the recent cap-weighted dominance is one phase of a long cycle rather than a permanent state.
Fees, taxes and turnover
RSP's total expense ratio is 0.20%, compared with a 0.58% median for its Lipper multi-cap value peer group, and the fund has not paid a capital gains distribution since inception despite its regular rebalancing [1]. SPY's gross expense ratio is 0.0945% [2]. The 0.1055 percentage point fee gap is real but small next to the return differences above; what matters more is whether an investor wants the mid-cap and value tilt that equal weighting creates.
Equal weighting also changes valuation. Vanguard reported a price/earnings ratio of 27.5x for its S&P 500 ETF on June 30, 2026, a figure pulled up by the largest growth stocks [3]. Because RSP gives the same weight to the 400 smaller constituents, its aggregate multiple is lower whenever the mega-caps trade at a premium, which is part of why it tends to do better when market leadership broadens.
Which approach fits which investor
- Concentration concern: an investor uneasy that ten stocks are 36% of the S&P 500 may consider RSP as a partial replacement or complement, since it holds every company near 0.2% [1][2].
- Lowest cost and tracking: SPY, or the 0.03% S&P 500 funds, remain the cheapest way to own the market as it is.
- Blending: holding both moves a portfolio part of the way toward equal weight without abandoning the index that most benchmarks and options markets reference.
- Time horizon: the rolling data show either method can lag for years at a time, so the choice should be made for a full cycle, not a quarter [1].
Equal weight beat cap weight in the first half of 2026 by about two percentage points, but the cap-weighted S&P 500 still leads by three points a year over the past decade.
Holdings overlap and weight comparisons between RSP, SPY and other core funds are available on DataPorium's ETF analytics page [4].
Key takeaways
- RSP returned 12.03% in the first half of 2026 versus 10.13% for SPY [1][2].
- SPY leads over one, three, five and ten years; the three-year gap is about six points a year [1][2].
- The largest 100 companies are 75% of the cap-weighted S&P 500 but 20% of the equal-weight version [1].
- Equal weight has won about half of rolling three-, five- and ten-year periods since 2003 [1].
- RSP costs 0.20% and has paid no capital gains distributions since inception [1].
Frequently asked questions
Is RSP better than SPY?
It depends on the period. RSP led in the first half of 2026 (12.03% versus 10.13%), but SPY returned 15.35% a year over the ten years to June 30, 2026 against 12.14% for RSP [1][2]. Equal weight wins when leadership is broad and loses when a few mega-caps drive the index.
What is the expense ratio of RSP?
RSP's total expense ratio is 0.20%, compared with 0.0945% for SPY [1][2].
Why does the equal-weight S&P 500 have a mid-cap tilt?
Because every stock gets the same weight, the 400 smaller constituents make up 80% of RSP against 25% of the cap-weighted index, so the fund behaves more like a mid-cap portfolio [1].
Does RSP pay capital gains distributions?
Invesco reports that RSP has not paid a capital gains distribution since its 2003 inception, even though it must trade at each rebalance to restore equal weights [1].
Sources & References
- [1] Invesco S&P 500 Equal Weight ETF (RSP) product brief and standardized performance as of June 30, 2026
- [2] State Street SPDR S&P 500 ETF Trust (SPY) Fact Sheet as of June 30, 2026
- [3] Vanguard S&P 500 ETF (VOO) Fact Sheet as of June 30, 2026
- [4] DataPorium ETF Analytics: Holdings, Flows and Performance
