Hi there! I’m Isabel Wang, your MarketWatch reporter, and I’m here with the latest scoop on ETF Wrap. This week, we’re shining the spotlight on an S&P 500 equal-weight ETF that’s been turning heads and drawing in major interest and inflows in 2023, despite the continued reign of mega-cap technology stocks.
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The Invesco S&P 500 Equal Weight ETF
RSP
has been causing a stir with over $10.1 billion in net inflows this year, including nearly $3.3 billion in just the past month. FactSet data shows this marks a record high for the largest equal-weight ETF since its launch in 2003.
Compare that to the year-to-date net inflows of all ETFs tracking the market-cap-weighted S&P 500. While those funds have seen a whopping $93 billion in total net inflows, that figure only counts for around 10.1% of their collective AUM at the start of the year, according to Nick Kalivas, head of factor and core equity ETF strategy at Invesco.
In a phone interview with MarketWatch on Thursday, Kalivas said, “As a proportion to the size, RSP is taking market share and finding greater interest in terms of flows, and that shows you that investors have been very interested in mitigating the concentration risk that’s present.”
Curious to know more? Read on