Invesco’s equal-weight S&P 500 ETF has garnered significant interest this year.
The Invesco S&P 500 Equal Weight ETF (RSP) is on track to exceed its previous annual flows record set in 2023. The fund has seen $13.9 billion in net flows year to date through November 29, surpassing the $12.8 billion taken in last year. If flows continue into RSP, it could beat 2023’s record by a notable margin.
The $12.8 billion in inflows going into the ETF in 2023 followed several years of growing flows. RSP saw $5.2 billion in net flows in 2022, $7.8 billion in 2021, $684 million in 2020, and just $49 million in 2019.
See more: Moving Averages: S&P Finishes November 2024 Up 5.7%
RSP may be a solution for investors seeking a potential concentration hedge against U.S. mega-cap tech companies. Furthermore, the strong growth of U.S. mega-cap technology names has led to increased concentration in the global equity markets, which may create unintended risks in multi-asset portfolios.
RSP tracks the S&P 500 Equal Weight Index, which effectively gives every security in the S&P 500 an equal weight at each quarterly rebalance. Equal-weighted strategies may provide diversification benefits and reduce concentration risk by weighting each constituent company equally so that a small group of companies does not have an outsized impact on the index.
Invesco’s Equal-Weight ETF’s Performance
RSP outpaced the cap-weighted S&P 500 by around 90 basis points in the past month. Year to date through November 29, RSP is up 20.3%, while the S&P 500 has climbed 28.1%.
The ETF is beating the S&P 500 since the fund’s 2003 inception. RSP has gained 932%, while the S&P 500 has increased 906.8% during this period, each nonannualized.
See more: Invesco’s 5 Top-Performing ETFs in 2024
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