Equal-weight S&P 500 ETF Surpasses cap-weighted rival, hits $100 billion AUM
The Invesco S&P 500 Equal Weight ETF has outperformed the iShares Core S&P 500 ETF by nearly 4 percentage points this year and reached $100 billion in assets.
In 2026 the Invesco S&P 500 Equal Weight ETF (RSP) has delivered a 15.95% return year-to-date, outpacing the iShares Core S&P 500 ETF (IVV) by roughly 3.58 percentage points. The fund crossed the $100 billion assets-under-management threshold on August 19, buoyed by over $12 billion of net inflows this year. Unlike cap-weighted funds that heavily weight giants such as Nvidia, Microsoft, Apple and Amazon, RSP rebalances each of the 500 stocks to similar sizes each quarter, reducing exposure to underperforming large tech names.
This design has allowed it to benefit from strong performances among smaller S&P 500 constituents while avoiding the drag from lagging megacaps. Analysts note that the fund’s growth could eventually strain liquidity in its smallest holdings, with a potential stress point around $400 billion. The divergence also highlights the broader market’s reliance on a handful of tech giants, as the traditional index holds about 38% tech versus roughly 17% in the equal-weight version.
Why it matters
Investors see equal-weight ETFs as a way to reduce reliance on a few dominant tech stocks and capture broader market upside.
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