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RSP: Why I Am Upgrading This Large-Cap ETF
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RSP: Why I Am Upgrading This Large-Cap ETF

Seeking Alpha·The Intelligent ETF Investor·about 1 month ago
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Home Latest Articles Summary I am upgrading Invesco S&P 500 Equal Weight ETF (RSP) to Buy, favoring its diversified sector exposure over SPY and VOO. RSP’s equal-weight methodology reduces concentration risk, offering higher exposure to Industrials, Financials, and other underweighted S&P 500 sectors. RSP trades at a lower P/E (16.7x) and price/book (3.1x) than SPY, enhancing its appeal amid sector rotation and smaller-cap outperformance trends. While my scenarios suggest modest probability-weighted returns, RSP should outperform in bearish or neutral markets and offers a prudent alternative to cap-weighted ETFs. Epiximages/iStock via Getty Images One of my concerns with stocks after a three-year run fueled by the performance of the Magnificent 7 or the Elite 8 was the high concentration of the S&P 500 in just a few stocks.…

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