Which Variation of the S&P 500 Is Better: Vanguard's VOOG or Invesco's RSP?

Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and Invesco S&P 500 Equal Weight ETF (NYSEMKT:RSP) differ most in sector exposure, dividend yield, and return profile. VOOG concentrates on tech growth stocks, while RSP diversifies evenly across the S&P 500 and pays out more income.

Both funds track S&P 500 companies, but VOOG focuses on growth stocks, with a heavy weighting toward technology. Meanwhile, RSP equally weights every S&P 500 component, giving smaller companies and less dominant sectors a larger voice. This comparison examines cost, performance, risk, and portfolio construction to help investors determine which approach best fits their goals.

Snapshot (cost & size)

The one-year return represents total return over the trailing 12 months.

RSP is less affordable, charging an annual fee of 0.20% versus VOOG’s 0.07%. However, it delivers a substantially higher dividend yield of 1.64% compared to VOOG's 0.49%, making it more appealing to income-focused investors.

Performance & risk comparison

What's inside

RSP holds 505 stocks, assigning each an equal weight regardless of company size, which helps to flatten sector dominance. Technology accounts for 16% of holdings -- Industrials 15%, and Financial Services 14%. Its top positions -- Sandisk, Norwegian Cruise Line Holdings, and Micron Technology -- each represent less than 0.3% of assets, and the fund’s 22-year history signals long-standing discipline with no leverage, currency hedging, or other structural quirks.

VOOG, by contrast, is concentrated in 212 growth stocks with a sharp tilt toward Technology (57%), trailed by Consumer Cyclical and Financial Services. Its top three holdings -- Nvidia, Apple, and Microsoft -- account for over 25% of assets, making it more sensitive to the fortunes of a handful of large-cap tech names.

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What this means for investors

In my opinion, these are two awesome ETFs in their own ways. While VOOG has outperformed the broader S&P 500 index and RSP over the last 15 years, each ETF has compelling reasons for investors to buy. For example, if you are looking for quick exposure to the Magnificent Seven, AI, leading-edge technologies, semiconductors, or any of today's hottest stocks, VOOG likely has you covered. However, as a growth-oriented ETF with a lofty average P/E ratio of 36, VOOG may not be the smoothest ride out there for risk-averse investors.

On the other hand, RSP's equal weighting of the 505 stocks in the S&P 500 provides stronger diversification, as evidenced by its significantly smaller five-year drawdown. Furthermore, RSP offers a dividend yield that is three times larger than VOOG -- all while trading at a P/E ratio of just 23. This might make it more appealing to passive income seekers and contrarian investors alike.

Ultimately, both are "set-it-and-forget-it" types of ETFs, so if you can handle VOOG's increased volatility -- and believe the mega-cap tech stocks it holds will continue to thrive -- it is probably the better bet to outperform, as history shows. That said, I personally would lean toward buying RSP since it trades at a lower valuation, provides exposure to more stocks that I don't own, is less volatile, has a reasonably low expense ratio, and pays a higher and faster-growing dividend.

Josh Kohn-Lindquist has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends Micron Technology and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.