One Exceptional S&P 500 ETF Worth Considering for Purchase Today

The S&P 500 index is a popular measure of the performance of large U.S. stocks, but its heavy reliance on a few massive companies can pose risks. However, investors looking for a more balanced approach may want to consider the Invesco Equal Weight S&P 500 ETF (NYSEMKT: RSP).

Unlike traditional S&P 500 index funds, which are weighted towards larger companies, the Invesco Equal Weight ETF allocates its assets evenly among all 500 companies in the index. This means that smaller companies have the same influence on the fund’s performance as megacaps like Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA).

While the equal weight S&P 500 index has underperformed the standard benchmark in recent years, over the long run, it has actually outperformed. Data shows that over the past three, five, and ten years, as well as over 20 and 30 years, the equal weight index has delivered better returns.

One caveat to keep in mind is the cost of the Invesco Equal Weight ETF, which has a 0.20% expense ratio compared to the 0.03% expense ratio of the Vanguard S&P 500 ETF. While this is still relatively low for an index fund, it is something to consider when making investment decisions.

Overall, the Invesco Equal Weight S&P 500 ETF could be a great option for investors looking for broad stock market exposure without relying too heavily on any individual company’s performance. If diversification and balance are important to you, this ETF may be worth a closer look.