RSP vs SPLG: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between RSP and SPLG

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.

SPLG (SPDR Portfolio S&P 500 ETF) is a us large-cap blend fund managed by State Street. SPLG tracks the S&P 500 Index at an expense ratio of just 0.02%, making it one of the absolute cheapest ways to own America's 500 largest companies. It is the low-cost sibling of the famous SPY ETF, designed specifically for long-term buy-and-hold investors rather than active traders. The lower share price compared to SPY also makes it more accessible for smaller investment amounts.

The most notable differences are in fees (0.20% vs 0.02%), number of holdings (503 vs 503), and 5-year returns (10.00% vs 14.00%).

Holdings Overlap Analysis

RSP and SPLG share only 5% 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 $1,524 on a $10,000 investment. SPLG saves you more in fees over time.

Which One Should a Beginner Choose?

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%.

Choose SPLG if: You want cost-conscious long-term investors who prioritize the lowest possible fees, beginning investors wanting affordable entry into s&p 500 investing, retirement savers using tax-advantaged accounts where trading volume matters less. It's managed by State Street with an expense ratio of 0.02%.

Can You Own Both RSP and SPLG?

Absolutely! With only 5% overlap, RSP and SPLG 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