VADCX - Invesco Equally-Weighted S&P 500 Fund Class C (2024)

FAQs

What is the return on Invesco S&P 500 Equal Weight ETF? ›

The S&P 500 Equal Weight Index (EWI) is the equal-weight version of the widely-used S&P 500. The index includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight - or 0.2% of the index total at each quarterly rebalance.

The index is an equal-weighted version of the S&P 500^® Index, which measures the performance of equity securities of larger U.S. companies. The fund can invest in derivative instruments including futures contracts.

Expense ratio source: Lipper, Bloomberg, as of September 30, 2023. Total expense ratio of 0.20% represented for RSP.

Overall Rating. Morningstar has awarded this fund 4 stars based on its risk-adjusted performance compared to the 1292 funds within its Morningstar Category.

Equal-weight ETFs offer a great way for investors to diversify away from the biggest companies within an industry, especially when an index becomes overconcentrated, however, it is important to be aware of the natural small-cap bias and high turnover costs that come with this indexing approach.

The market cap weighted S&P 500 Index (the traditional version) is not rebalanced and has higher concentrations to larger, growth companies, while the equal weight index has more exposure to smaller and value-oriented companies.

Equal-weight index funds treat every company in the index equally, in contrast to traditional market cap-weighted index funds that give larger businesses more weight. This results in a more well-rounded and diversified portfolio with the potential for higher long-term returns.

An equal-weighted index is a stock market index – comprised of a group of publicly traded companies – that invests an equal amount of money in the stock of each company that makes up the index. Thus, the performance of each company's stock carries equal importance in determining the total value of the index.

Our recommendation for the best overall S&P 500 index fund is the Fidelity 500 Index Fund. With a 0.015% expense ratio, it's the cheapest on our list. And it doesn't have a minimum initial investment requirement, sales loads or trading fees. Over the last 10 years, FXAIX has returned an annualized 12.82%.

What is the largest S&P equal weight ETF? ›

Equal-Weighted ETFs

The average expense ratio is 0.53%. Equal-Weighted ETFs can be found in the following asset classes: EquityFixed IncomeCurrencyAlternativesAsset AllocationThe largest Equal-Weighted ETF is the Invesco S&P 500 Equal Weight ETF RSP with $57.60B in assets.

When was SPY created? SPY was created on January 22, 1993. It was the first US ETF to be listed on a national stock exchange, and it remains the most widely traded ETF in the world.

The Invesco S&P 500® Equal Weight ETF (Fund) is based on the S&P 500® Equal Weight Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index equally weights the stocks in the S&P 500® Index. The Fund and the Index are rebalanced quarterly.

A good rule of thumb is to not invest in any fund with an expense ratio higher than 1% since many ETFs have expense ratios that are much lower. Also, ETFs tend to be passively managed, which keeps the management fee low.

As of August 2024, in the previous 30 Years, the SPDR S&P 500 (SPY) ETF obtained a 10.56% compound annual return, with a 15.12% standard deviation.

Equal-weighted indexes are rebalanced at set frequencies (e.g., weekly, monthly). Between rebalancing dates, stock weights will fluctuate with prices. Thus, an equally weighted index builds in a disciplined rebalancing process, taking advantage of mean reversal in stock returns and locking in recent gains/losses.

Invesco S&P 500 Equal Weight Income Advantage ETF

Like RSP, RSPA tracks the S&P 500 Equal Weight Index, but it's also designed to provide consistent monthly income and maintain growth potential —all with less volatility and downside risk mitigation.