Best S&P 500 Equal Weight ETFs to Invest in 2025

Top S&P 500 Equal Weight ETF

If you have to invest in the S&P 500 but desire a more diversified strategy, the Invesco S&P 500 Equal Weight ETF (RSP) is probably your best option. Unlike regular S&P 500 ETFs, in which Apple and other giants exert disproportionate influences, RSP assigns an equal 0.2% weighting to all 500 constituents.

This diminishes concentration risk and has in the past resulted in better returns—beating the S&P 500 by 0.51% per year since 2003. With $72.3 billion in assets and a low 0.20% expense ratio, it's a good choice for long-term investors.

Invesco S&P 500 Equal Weight ETF

Top Income ETF

For income-seeking investors, the Schwab U.S. Dividend Equity ETF (SCHD) is a winner. It pays 3.9% and tracks high-dividend S&P 500 stocks with an infinitesimal 0.06% expense ratio.

Options like the Vanguard High Dividend Yield ETF (VYM) (2.7% yield) and First Trust Morningstar Dividend Leaders Index Fund (FDL) (4.5% yield) are also excellent for retirees or income investors. Your choice depends on whether you prefer yield or price.

U.S. News Best Income ETFs

Are ETFs Superior to Index Funds?

ETFs and index funds both provide diversified, low-cost access to markets, but they're utilized for varying purposes. ETFs trade like stocks, so you can sell and purchase them during the day, which is best if you need flexibility. They're also more tax efficient, since they hardly ever pass on capital gains.

Index funds are priced once a day and can have reduced minimums, so they're best for set-it-and-forget-it investors. Neither is inherently "better"—it's just a question of whether or not you prefer liquidity or convenience.

NerdWallet ETF vs. Index Fund

Stocks vs ETFs vs Index Funds

• Stocks: Purchasing stocks individually can be very lucrative but is risky and time-consuming. They are ideal for people who love delving into company information.
• ETFs: These provide instant diversification, are bought and sold like stocks, and have little in fees. They're perfect for most investors for balance.
• Index Funds: Not as liquid as ETFs but identical in concept, they're ideal for long-term investors who don't require much trading.

Investopedia ETF vs. Index Fund

Top Preferred ETF

Invesco Preferred ETF (PGX) ranks among the leaders for preferred stock investors, with $4.5 billion in assets and a yield of approximately 7%. It is held in income and capital appreciation, with significant exposure to financials (71%).

Preferred ETFs such as PGX are excellent for tax-advantaged income and diversification, particularly in a low-interest-rate world.

What is an Equal-Weighted Index?

An equal-weighted index assigns equal weight to all stocks, irrespective of size. For instance, in the S&P 500 Equal Weight Index, each of the 500 stocks has a 0.2% weight, compared to the original S&P 500, where mega-cap stocks have a heavy weight.

This reduces reliance on mega-cap stocks and has the potential to increase the return from smaller stocks, although it could increase volatility.

What is an Equal-Weight Index Fund?

An equal-weight fund replicates an equal-weighted index, like the S&P 500 Equal Weight Index. A notable example is the Invesco S&P 500 Equal Weight ETF (RSP), where each stock has an equal contribution to generate. These funds rebalance quarterly, which can increase trading costs but offers more diversified market exposure.

S&P Equivalent in India

Nifty 500 or BSE 500 are the optimal Indian proxies for S&P 500 because they include 500 companies, which represent a wide slice of the market (Nifty 500 represents 96% of NSE's free-float market capitalization).

Nifty 50 and Sensex are, however, better known as India's blue-chip indices, just like S&P 500 is better known in the U.S. Reddit India Investments.

Equal-Weighted ETF in India

The DSP Nifty 50 Equal Weight ETF was the first equal-weight ETF in India, launched in 2021. It replicates the Nifty 50 Equal Weight Index, assigning equal weight of 2% to each of the 50 stocks, less dependence on heavy weights such as Reliance Industries.

The UTI Nifty 50 Equal Weight Index Fund is also available, providing the same advantages.

Key Points

• Best S&P 500 Equal Weight ETF: The Invesco S&P 500 Equal Weight ETF (RSP) is the best overall due to its strong record, high assets under management ($72.3 billion as of 2025), and past outperformance of the S&P 500 by 0.51% per year since 2003.
• Best Income ETF: Schwab U.S. Dividend Equity ETF (SCHD) is the best with its 3.9% yield and 0.06% expense ratio and is a great choice for income investors, although others such as Vanguard High Dividend Yield ETF (VYM) are also good.
• ETFs vs. Index Funds: ETFs have intraday trading and tax efficiency, while index funds have lower minimums and are suitable for long-term, set-and-forget investors. The decision is based on your investment style and objectives.
• Stocks vs. ETFs vs. Index Funds: Stocks carry more risk but potentially higher returns; ETFs and index funds offer diversification and less risk, with the ETF being more liquid.
• Best Preferred ETF: The Invesco Preferred ETF (PGX) is a top pick since it is worth $4.5 billion and makes money from preferred stocks.
• Equal-Weighted Index: Index in which every stock carries the same weight, lessening dependence on large firms and potentially increasing return from smaller firms.
• S&P Equivalent in India: Nifty 500 or BSE 500 are the best equivalents of the S&P 500, with 500 companies, although Nifty 50 and Sensex are utilized more frequently.
• Equal-Weighted ETF in India: DSP Nifty 50 Equal Weight ETF is yet another trailblazing choice, assigning equal 2% weight to each of the 50 Nifty firms.

Understanding Equal Weight ETFs

Equal-weight ETFs are a breath of fresh air from the investment norm. While market-cap-weighted ETFs have the likes of Apple or Microsoft as stars, equal-weight ETFs make each stock an equal player. Take a basketball team wherein everyone, from the star player to the new rookie, receives equal floor time. That is what equal-weight ETFs do for the S&P 500's 500 stocks, which receive an equal 0.2% weight.

How They Differ

In a market-cap-weighted ETF, large firms dominate performance. In the S&P 500, for example, the top 10 have over 30% of the index weight. Equal-weight ETFs level the playing field so that no single stock can overwhelm the others. This requires quarterly rebalancing, selling overpriced and buying underpriced stocks, which increases trading expense but keeps the portfolio in balance.

Advantages

• Diversification: By dividing investments equally, equal-weight ETFs minimize the risk of your portfolio being dependent on a few large-cap stocks.
• Lower Risk of Concentration: When a behemoth like Amazon collapses, it won't take your whole investment down with it.
• Space for Greater Returns: Small companies, being underweighted in cap-weighted indexes, may be the source of outperformance. For instance, the smallest 50 companies in S&P 500 Equal Weight Index outperformed the largest 50 by about 5% during 2003-2024.

S&P 500® Equal Weight Index – Key Details & Insights

Source: S&P Dow Jones Indices (Factsheet as of June 30, 2025)

Description & Methodology

• Equal-weight version of the classic S&P 500: same 500 constituents, each assigned 0.2% weight at each quarterly rebalance.
• Designed to neutralize size bias and reduce concentration in mega-caps, offering greater exposure to mid- and small-caps within the large-cap universe.
• Rebalanced quarterly (Mar, Jun, Sep, Dec); real-time calculation in USD (and six other currencies).

Performance (through 6/30/2025)

Risk & Risk-Adjusted Returns

Fundamentals (as of mid-2025)

Index Characteristics

• Constituents: 504
• Mean Market Cap: $109,202 m
• Largest Market Cap: $3,852,990 m
• Smallest Market Cap: $5,202 m
• Top-10 Weight: 2.4% each; Top-10 aggregate 36.4%

Top 10 Constituents (by equal weight)

1. Coinbase (COIN)
2. Oracle (ORCL)
3. Jabil (JBL)
4. Carnival (CCL)
5. AMD (AMD)
6. Northern Trust (NTRS)
7. Royal Caribbean (RCL)
8. Vistra (VST)
9. Estée Lauder (EL)
10. Western Digital (WDC)

Sector Weighting

ESG & Carbon Metrics

• Avg. Carbon Intensity: 84.7 tCO₂e/$1 m revenue
• Fossil-Fuel Emissions: 483.5 tCO₂/$1 m invested

Investable ETFs Tracking the S&P 500 EWI

¹ Typical for Amundi equal-weight ETF share classes; check issuer site for exact TER.

² A selection of the largest/regional variants; see S&P factsheet for full list.

Best ETF Recommendations

Best Equal Weight S&P 500 ETFs in Canada

The Canadian market has one top choice for equal-weight S&P 500 exposure: the Invesco S&P 500 Equal Weight Index ETF (EQL). It was launched in 2003 and is the first and sole ETF of its type in Canada, so it's a trailblazer for smart beta funds.

Invesco S&P 500 Equal Weight Index ETF (EQL)

• Key Features: It follows the S&P 500 Equal Weight Index where every stock accounts for 0.2% of the index. It comes in unhedged CAD (EQL), CAD-hedged (EQL.F), and USD (EQL.U) units.
• Performance Metrics: Beat the S&P 500 by 0.89% per year since inception (January 8, 2003, through December 31, 2023). As of March 2024, its forward P/E was 18.3, a 16% discount to the S&P 500's 21.9.
• Fees and Expenses: Management expense ratio (MER) is 80% below the average U.S. equity ETF, making it extremely cost-effective.
• Why It Excels: EQL reduces concentration risk and works well with large-cap/growth strategies, best suited for diversifying U.S. equity exposure.

Invesco Canada EQL

Top Equal Weight S&P 500 ETFs in the UK

In the UK, equal-weight S&P 500 ETFs have the following options, with the Invesco S&P 500 Equal Weight UCITS ETF (RSP) and Xtrackers S&P 500 Equal Weight UCITS ETF 1C being the market leaders.

Invesco S&P 500 Equal Weight UCITS ETF (RSP)

• Key Features: Tracks the S&P 500 Equal Weight Index, with accumulation and distribution share classes. Stocks are weighted 0.2%, quarterly rebalanced.
• Performance Measures: 1-year return of 3.56% as of June 2025.
• Fees and Charges: Total expense ratio (TER) of 0.20% p.a.
• Why It Stands Out: Provides flexibility for income or growth-oriented investors.

Invesco UK RSP

Xtrackers S&P 500 Equal Weight UCITS ETF 1C

• Key Features: The largest fund size of UK equal-weight ETF with 7,027 million GBP. Accumulation share class.
• Performance Measures: 1-year return of 3.57% as of June 2025.
• Fees and Charges: TER of 0.20% p.a.
• Why It Excels: Suitable for investors looking for stability and size.

JustETF S&P 500 Equal Weight

Amundi S&P 500 Equal Weight UCITS ETF Acc

• Key Features: Lowest TER of 0.12% p.a., accumulating share class.
• Performance Metrics: Insufficient data owing to recent launch, but 1-month return of 1.72% as of June 2025.
• Fees and Expenses: Best value for money.

Lowest S&P 500 Equal Weight ETF

The Amundi S&P 500 Equal Weight UCITS ETF Acc has the lowest TER of 0.12% p.a. and is the most affordable investment for UK investors. The Invesco S&P 500 Equal Weight ETF (RSP) in the US is also competitive with a 0.20% expense ratio, which is 68% less than its peer group average.

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S&P 500 Equal Weight ETF and S&P 500

An Invesco S&P 500 Equal Weight ETF (RSP) compared to a standard S&P 500 ETF (e.g., Vanguard S&P 500 ETF, VOO):

• Performance Record: RSP outperformed the S&P 500 by 0.51% annually since 2003. It exceeded the S&P 500 in 52.78% of 10-year periods as of March 2025.
• Risk Assessment: Equal-weight ETFs are more risky with greater exposure to small firms but provide protection against falls in industries.
• Cost Comparison: RSP's 0.20% expense ratio is marginally higher than VOO's 0.03%, but its tax efficiency (no capital gains distributions since 2003) makes up for it.

When to Use Each:

• Equal Weight: Ideal for those investors who desire diversification and outperformance of the smaller stocks.
• Traditional S&P 500: Best for those who want stability and lower costs.

Forbes S&P 500 ETFs

Vanguard and Fidelity S&P 500 Equal Weight ETFs

Vanguard S&P 500 Equal Weight ETF: Vanguard currently does not have an S&P 500 equal-weight ETF. Its flagship Vanguard S&P 500 ETF VOO is market-cap weighted. Vanguard VOO

Fidelity S&P 500 Equal Weight ETF: Fidelity does not offer a stand-alone S&P 500 equal-weight ETF but instead favors market-cap-weighted funds.

Conclusion

Equal-weight S&P 500 ETFs provide a great way to invest in the U.S. market with not too much concentration in mega-cap. Whether you are in Canada using EQL, the UK using RSP or Xtrackers, or looking at India's DSP Nifty 50 Equal Weight ETF, the funds provide diversification, lower concentration risk, and the potential for greater returns.

They are more expensive and have higher volatility from rebalancing, however. As you consider your options, think about your investment goals, your risk tolerance, and your need for flexibility or simplicity. Equal-weight ETFs are like giving every member of the team a chance to shine—sometimes the underdogs score the biggest goals.

S&P Dow Jones Indices