Invesco’s Equal Weight ETF Nears $10 Billion in YTD Flows

The Invesco S&P 500 Equal Weight ETF (RSP B+) has seen $9.6 billion in net flows year to date through October 21, according to ETF Database. This makes it Invesco’s third most popular ETF year to date, as measured by net flows, trailing only the Invesco QQQ Trust (QQQ B) and the Invesco NASDAQ 100 ETF (QQQM B+).

RSP has notably taken in $2.6 billion in the past one-month period alone. The $67 billion equal weight ETF launched in 2003 but has seen dramatic growth in recent years, accreting $28 billion in the past three years. 

2024 is on track to be another record year for flows into Invesco’s equal weight ETF. The fund took in $12.8 billion in net flows in 2023, $5.2 billion in 2022, and $7.8 billion in 2021. RSP garnered net flows totaling $684 million in 2020 and just $49 million in 2019.

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 weight’s methodology of selling relative winners and buying relative losers adds the small size and value factor tilts to a portfolio.

Equal-weighted strategies can 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.

RSP is up 15.7% year to date through October 21 compared to the S&P 500’s 24.1% gain. However, the Invesco ETF outperformed the S&P 500 by 4% during the third quarter.

Notably, RSP is beating the S&P 500 when looking back since the fund’s 2003 inception. RSP is up 891.9% while the S&P 500 is up 875.6%, each nonannualized, since RSP’s inception. 

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