Invesco's S&P 500 Equal Weight ETF (RSP) just hit a big round number: $100 billion in assets under management. That's a sign that investors are increasingly looking for ways to avoid the mega-cap stocks that dominate the traditional S&P 500.
Launched in 2003, RSP gives each company in the S&P 500 the same weight, rather than weighting by market cap. Invesco says it's the only U.S.-listed ETF offering equal-weight exposure to the index.
The firm now has 15 equal-weight ETF strategies, including 10 sector ETFs. Its S&P 500 Equal Weight Income Advantage ETF (RSPA) has also crossed $1 billion in AUM, about two years after launch. And Invesco recently added the QQQ Equal Weight ETF (QEW), which offers a more balanced way to access Nasdaq-100 companies.
Equal Weight Challenges Mega-Cap Dominance
RSP's milestone comes as market leadership has become increasingly concentrated among a handful of mega-cap companies. Equal-weight strategies let investors spread exposure more evenly across companies and sectors, rather than letting the biggest stocks drive portfolio returns.
That distinction matters when market leadership broadens. RSP reduces the influence of the largest S&P 500 constituents while boosting the relative weight of smaller ones.
The growth of RSPA and the launch of QEW show how asset managers are extending the equal-weight concept beyond a single flagship fund. Invesco is combining the approach with income generation and Nasdaq-100 exposure, giving investors more ways to move away from traditional market-cap weighting.
