The Invesco S&P 500® Equal Weight ETF (RSP) has rallied tremendously in performance and investor attention as market breadth improves.
RSP has hauled in $4.4 billion in net flows in June with two trading days left in the month. The equal-weight fund has seen the second-greatest net flows of all ETFs over one month.
The spike in June flows comes after RSP accreted just $180 million in net flows during the first five months of the year. RSP has over $38 billion in assets under management, making it the largest equal-weight ETF available to investors.
“Advisors and end clients have looked to get broader equity exposure in June using individual stocks and the equally weighted RSP,” Todd Rosenbluth, head of research at VettaFi, said. “For many, this has become a core equity exposure and better alternative to a cap-weighted approach dominated by a few growth stocks.”
RSP, which tracks the S&P 500 Equal Weight Index, is outpacing the benchmark S&P 500 in June. The equal weight fund is up 5.1% while the benchmark has gained 3.8% Equal weight strategies have shown strength this month as market breadth improves.
Market Breadth Improves, Supporting Equal Weight ETFs
S&P 500 breadth has turned strongly positive in June, with 417 names and all sectors up as of June 28. Of that, 115 names are up more than 10%, S&P Dow Jones Indices senior index analyst Howard Silverblatt wrote in an email on June 28.
This month’s broad rally is a dramatic change from the narrow performance seen earlier in the year. In May, just 175 names were positive.
Launched in 2003, RSP has garnered significant attention among the investor community in the past few years. The fund accreted $5.2 billion last year after taking in $7.8 billion in flows in 2021. In 2020, RSP garnered $684 million in flows, and in 2019, saw just $49 million in net flows.
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