RSP vs. IVV: Is RSP's Diversification or IVV's Lower Fees Better for Average Investors?

2 weeks ago 9

Jake Lerch, The Motley Fool

Sat, January 17, 2026 astatine 12:04 PM CST 5 min read

RSP charges a higher disbursal ratio but offers a modestly higher dividend output than IVV
IVV has delivered stronger caller returns and heavier vulnerability to technology, portion RSP spreads its bets much evenly crossed sectors
RSP’s hazard illustration is somewhat little volatile, with a smaller five-year max drawdown compared to IVV
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The iShares Core SP 500 ETF (NYSEMKT:IVV) and Invesco S&P 500 Equal Weight ETF (NYSEMKT:RSP) disagree astir successful however they value stocks, assemblage exposures, and cost, with IVV tracking the marketplace cap-weighted S&P 500 and RSP giving each institution an adjacent footing.

Both IVV and RSP purpose to springiness investors diversified entree to ample U.S. companies, but their strategies diverge: IVV mirrors the market’s biggest players, portion RSP levels the playing field. This examination looks astatine cost, caller performance, risk, and what’s really wrong each ETF to assistance clarify which attack whitethorn entreaty to antithetic investing styles.

Metric

IVV

RSP

Issuer	IShares	Invesco
Expense ratio	0.03%	0.20%
1-yr instrumentality (as of Jan. 9, 2026)	19.5%	14.1%
Dividend yield	1.2%	1.6%
Beta	1.00	0.99
AUM	$758.5 billion	$77.2 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

IVV remains overmuch much affordable connected fees, but RSP offers a somewhat higher payout acknowledgment to its greater dividend yield. That other output whitethorn entreaty to income-focused investors consenting to wage a higher disbursal ratio for a antithetic assemblage mix.

Metric

IVV

RSP

Max drawdown (5 y)	-24.53%	-21.37%
Growth of $1,000 implicit 5 years	$1,834	$1,506

RSP tracks the S&P 500 Equal Weight Index, holding astir 505 companies with nary azygous sanction dominating the fund. This attack pulls assemblage weights distant from tech and toward areas similar Industrials and Financial Services, with Technology accounting for conscionable 16% of assets. Top holdings—such arsenic Sandisk Corp/DE (NASDAQ:SNDK), Norwegian Cruise Line Holdings Ltd (NYSE:NCLH), and Micron Technology Inc (NASDAQ:MU)—each correspond little than 0.3% of the portfolio, showing however diversified the vulnerability is. The money has a agelong way record, with much than 22 years successful operation.

By contrast, IVV replicates the S&P 500 successful its modular market-cap weighting, which means Technology (43%) and large giants similar Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT) dominate. This leads to higher attraction successful the largest names, which has historically boosted returns during tech-led rallies but increases dependence connected a fistful of companies.