Investors add $2.82B to RSP as equal-weight demand rises

Invesco’s S&P 500 Equal Weight ETF (RSP) collected $2.82 billion of net inflows over the past month, including $228.75 million in the last five trading days. The fund has taken in $3.51 billion over the past three months.

The ETF assigns approximately 0.2% to each S&P 500 constituent at its quarterly rebalance. The fund’s rules-based process trims positions that have outperformed and reallocates capital to stocks that have lagged, keeping allocations roughly equal across the index rather than weighting by market capitalization.

Recent market gains have extended beyond the largest technology companies, with industrials, financials and healthcare contributing more to returns. Financial advisers and investors cited broader sector participation as a reason for increased allocations to equal-weight exposure.

RSP is offered as an alternative way to hold the S&P 500 and is intended to complement cap-weighted S&P 500 funds by providing a more balanced allocation across companies and sectors. The ETF does not pursue active stock selection and follows a set quarterly rebalance schedule.

In February, Todd Rosenbluth, head of research at VettaFi, named RSP his ETF of the Week and pointed to its suitability for investors seeking broad large-cap exposure without outsized allocations to the market’s largest firms.