DIA vs RSP: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between DIA and RSP

DIA (SPDR Dow Jones Industrial Average ETF) is a u.s. large-cap value fund managed by State Street Global Advisors. DIA tracks the Dow Jones Industrial Average, one of the oldest and most famous stock market indexes in the world, consisting of 30 blue-chip American companies. Unlike the S&P 500 which is weighted by market capitalization, the Dow is price-weighted, meaning higher-priced stocks have more influence. Beginners should know that DIA offers concentrated exposure to well-known industry leaders but is far less diversified than broader index funds.

RSP (Invesco S&P 500 Equal Weight ETF) is a us large-cap equal weight fund managed by Invesco. RSP holds all 500 stocks in the S&P 500 but gives each one an equal weight of about 0.2%, rather than weighting by market cap. This means smaller S&P 500 companies have the same influence as mega-caps like Apple or Microsoft. The equal-weight approach reduces concentration risk and provides a natural tilt toward mid-cap and value stocks within the S&P 500 universe.

The most notable differences are in fees (0.16% vs 0.20%), number of holdings (30 vs 503), and 5-year returns (11.80% vs 10.00%).

Holdings Overlap Analysis

DIA and RSP share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $334 on a $10,000 investment. DIA saves you more in fees over time.

Which One Should a Beginner Choose?

Choose DIA if: You want investors who want concentrated exposure to iconic blue-chip american companies, those who prefer a more balanced sector allocation without heavy tech concentration, investors who follow the dow jones industrial average as their primary market benchmark. It's managed by State Street Global Advisors with an expense ratio of 0.16%.

Choose RSP if: You want investors concerned about mega-cap concentration in traditional s&p 500 funds, those who believe in mean-reversion and want a systematically contrarian approach, diversification seekers who want broader s&p 500 exposure without size bias. It's managed by Invesco with an expense ratio of 0.20%.

Can You Own Both DIA and RSP?

Absolutely! With only 0% overlap, DIA and RSP complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions