Invesco S&P 500 Equal Weight ETF Gains Attention Amid Tech Volatility
Amid increasing volatility in tech stocks, the Invesco S&P 500 Equal Weight ETF (RSP) has gained traction in the U.S. stock market. RSP includes all S&P 500 index components with an equal weight of approximately 0.25%, thereby avoiding a heavy tilt towards major tech stocks and providing a stable alternative for investors. Approximately $4.637 billion has flowed into RSP this year, driven partly by investors seeking to decrease their reliance on tech stocks and diversify into other sectors.
RSP's long-term performance is also viewed favorably. Recently, RSP's returns rose by 4.09%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY), which only saw a 0.51% increase. Historically, equal-weighted ETFs have offered reduced volatility and served as a strategic choice over the long term. This trend indicates that global investment funds are possibly reducing their tech dependencies and shifting towards undervalued stocks.
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