Invesco Equal-Weight S&P 500 ETF Gains Appeal as Top 10 Holdings Reach 37%
Updated
Updated · Yahoo Finance · Aug 25
Invesco Equal-Weight S&P 500 ETF Gains Appeal as Top 10 Holdings Reach 37%
3 articles · Updated · Yahoo Finance · Aug 25
Summary
Roughly 37% of Vanguard's S&P 500 ETF now sits in its top 10 holdings, prompting a case for Invesco's equal-weight RSP as a way to cut megacap concentration.
Nvidia and Apple alone make up about 14% of the index, and adding Microsoft and Alphabet pushes that above 25%, leaving traditional S&P 500 investors more exposed to a handful of tech names.
RSP holds the same 500 companies but resets each to about a 0.2% weight at rebalancing, shifting the portfolio toward industrials, financials, tech and healthcare with at least 12% each.
That diversification has carried a cost: RSP has lagged during the megacap tech rally and could fall further behind if the biggest technology stocks keep leading the market.