How can an equal weight approach lead to potential outperformance?
Twenty years ago, RSP reinvented how investors access the S&P 500 with its unique equal weight approach. Since inception, the fund has helped investors overcome concentration risk1 within the market-cap weighted S&P 500 Index with the potential for outperformance.2 With concentration risk near all-time highs, investors can join the experts at Invesco and VettaFi to discuss the potential benefits of using an equal weight approach in today’s market environment.
Topics will include:
- An overview of the potential benefits of an equal weight approach and how it can help clients diversify their portfolios
- Highlight how RSP and other options within Invesco’s Equal Weight suite can help clients overcome concentration risk
- How investors can implement equal weight within their portfolios
Accepted for one hour of CFP/IWI/The American College Board CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Nick KalivasHead of Factor and Core Equity ETF Product Strategy
Garrett GlaweHead of U.S. Equity Indices
S&P Dow Jones Indices
Sam KiburzSenior Vice President & Chief Investment Officer
Crews Family of Banks
Todd RosenbluthHead of Research
1. Top 10 stocks in the S&P 500 currently account for 28.7% of the index weight vs. 2% in the S&P 500 Equal Weight Index. Data source: Bloomberg L.P., as of March 31, 2023. “Near all-time highs” claim based on the weight of the top 10 companies in the S&P 500 Index over the past 40 years. The highest weight over the past 40 years was in 2022 at 30.7%.
2. RSP has outperformed the market capitalization-weighted S&P 500 Index by 0.82% annually since inception in 2003. Source: Morningstar Research Inc. as of March 31, 2023. Past performance is not a guarantee of future results. Index returns do not represent fund returns, click here for fund performance. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. See invesco.com to find the most recent month-end performance numbers.
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This complimentary webcast is for financial professionals only and is closed to the public.
FOR INSTITUTIONAL INVESTOR USE ONLY — NOT FOR USE WITH THE PUBLIC NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
The information does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
Investments focused in a particular industry or sector, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
Diversification does not guarantee a profit or eliminate the risk of loss.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000, 150,000 Shares.
Before investing, consider the Fund’s investment objectives, risks, charges and expenses. Visit invesco.com for a prospectus with this information. Read it carefully before investing.
Invesco is not affiliated with VettaFi
Invesco Fund Risks and Prospectuses
Invesco Distributors, Inc. 4/23 NA2837088