The Invesco S&P 500 Equal Weight ETF (RSP) provides a wide range of exposure to the Large Cap Blend category. It started on April 24, 2003, and uses a smart beta strategy by giving equal weight to all S&P 500 stocks. Managed by Invesco, the fund now has assets over $73.7 billion. It charges an expense ratio of 0.20% and has a 12-month dividend yield of 1.57%, which is competitive with other funds. RSP’s portfolio mainly invests in the Industrials, Financials, and Information Technology sectors, making up 15.7% of its holdings.

Top Holdings and Performance

Some of RSP’s top holdings include Warner Bros Discovery Inc, Western Digital Corp, and Advanced Micro Devices Inc. As of November 27, 2025, RSP has a return of 10.07% this year and a 3.34% gain over the past year. It has a beta of 0.99 and a standard deviation of 14.56% over three years, with around 509 total holdings. For those considering alternatives to RSP, the iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO) are good options. IVV has assets of $728.68 billion, while VOO has $799.48 billion. Both funds have lower expense ratios at 0.03%. If you want lower-risk investments, traditional market cap-weighted ETFs are also a viable choice. As of November 27, 2025, RSP’s 10.07% year-to-date return shows that this year’s market gains have involved a broader range of stocks, not just the largest companies. However, the lower one-year return of 3.34% suggests that this wider participation is a recent shift after a time of limited leadership. For traders in derivatives, a key question is whether this broader market strength will last until year-end. Currently, the S&P 500 market-cap weighted index has become very concentrated, with the top ten companies making up more than 35% of the index’s total value. This level of concentration hasn’t been seen since the dot-com bubble in 2000. This situation means that any shift away from these giant companies could lead RSP to outperform other market-cap weighted peers like VOO and IVV.

Opportunities and Risks

Recent inflation has slowed, with October 2025’s Consumer Price Index (CPI) showing a low of 2.9%. This has people betting that the Federal Reserve might cut rates in the first half of 2026. Lower rates typically help smaller, more economically sensitive companies, which make up a larger part of RSP. The fund’s strong focus on Industrials and Financials puts it in a good position to benefit during this part of the economic cycle. As we approach December, it might be smart to prepare for a potential “Santa Claus Rally” that boosts a wider range of stocks, not just a few tech leaders. A bullish options strategy, like buying call spreads on RSP, could be a cost-effective way to take advantage of this year-end trend. With a standard deviation of 14.56% over three years, you can use this as a basis to assess whether current implied volatility in the options market offers a good entry point for such trades. The main risk to this outlook is a return to “risk-off” sentiment, which could happen if the November jobs report next week is disappointing. In such a case, investors would likely move their capital back to safer mega-cap tech and communication stocks. This could lead the equal-weight strategy to underperform, making long positions in RSP more vulnerable while benefiting market-cap weighted indexes. Create your live VT Markets account and start trading now.

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