RSP ETF: Equal Weight S&P 500 Strategy Explained - Vidéos industrielles CGM-LASER

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RSP ETF FAQs

How does RSP differ from traditional S&P 500 ETFs like SPY?

RSP uses an equal-weight strategy, giving each S&P 500 company the same allocation, while SPY follows market-cap weighting where larger companies dominate the portfolio.

How often does RSP rebalance its holdings?

RSP rebalances quarterly to maintain equal weight across all S&P 500 constituents, adjusting positions when any stock exceeds 20 basis points from its target weight.

Why might investors choose RSP over SPY?

RSP offers better diversification by reducing exposure to mega-cap stocks, potentially providing more balanced returns during market rotations away from tech giants.