Invesco S&P 500 Equal Weight ETF Surpasses $100 Billion

The Invesco S&P 500 Equal Weight ETF (RSP) has surpassed $100 billion in assets under management, drawing more than $12 billion in inflows this year. The fund's growth stems from investors seeking to mitigate concentration risk as the Magnificent 7 mega-cap technology stocks have cooled. By August 21, the equal-weight strategy outperformed the market-weighted S&P 500 by approximately 3% year-to-date.

This shift indicates a broadening market rally where earnings growth is distributed across a wider range of S&P 500 components rather than being dominated by a few AI-driven hyperscalers. While RSP leads a group of roughly 30 equal-weight ETFs, it remains smaller than the largest market-weighted funds from Vanguard, iShares, and State Street, which collectively hold nearly $3 trillion.

Industry analysts note that the top 10 names in major indices now account for nearly 40% of the S&P 500, prompting a move toward strategies that allow investors to participate more fully as market leadership expands. This approach ensures broad diversification by treating all index components with equal importance rather than weighting them by market capitalization.