Two titans of the S&P 500, Vanguard’s VOOG and Invesco’s RSP, stand at the crossroads of investment philosophy. One leans heavily on the gilded allure of tech growth, the other on the egalitarian embrace of equal weighting. A most diverting duel, if one has the patience for such matters.
Both track the S&P 500, yet VOOG is a monolith of growth stocks, its soul steeped in the vapors of Silicon Valley. RSP, by contrast, distributes its assets with the impartiality of a well-trained butler, ensuring no sector or company holds undue sway. A question of cost, performance, and temperament awaits resolution.
A Snapshot of Cost and Size
| Metric | VOOG | RSP |
|---|---|---|
| Issuer | Vanguard | Invesco |
| Expense ratio | 0.07% | 0.20% |
| 1-yr return (as of 2026-01-09) | 24.7% | 15.2% |
| Dividend yield | 0.49% | 1.64% |
The one-year return represents total return over the trailing 12 months.
RSP, though pricier at 0.20%, offers a dividend yield that would make a frugal man weep. VOOG, with its 0.07% fee, is a paragon of frugality, though its yield is as meager as a dachshund’s bark.
Performance & Risk: A Delicate Dance
| Metric | VOOG | RSP |
|---|---|---|
| Max drawdown (5 y) | -32.73% | -21.37% |
| Growth of $1,000 over 5 years | $2,025 | $1,630 |
What Lies Within
RSP, with its 505 equities, distributes its assets with the grace of a well-trained butler, ensuring no sector or company holds undue sway. Technology, at 16%, is but one guest at the feast, while Industrials and Financial Services vie for attention. Its top holdings-Sandisk, Norwegian Cruise Line, and Micron-each command less than 0.3% of assets, a testament to its disciplined restraint.
VOOG, by contrast, is a veritable haven for tech titans. With 212 stocks, it leans heavily on the likes of Nvidia, Apple, and Microsoft, whose combined weight exceeds 25% of assets. A bold strategy, though one that leaves investors perilously exposed to the whims of a few behemoths.
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What This Means for Investors
Both ETFs are, in their way, masterpieces. VOOG, with its 15-year outperformance, is a darling of the tech-savvy. Yet its lofty P/E ratio of 36 is a tempest waiting to happen. RSP, with its lower P/E of 23 and threefold higher dividend yield, offers a more sedate path-though one might argue it lacks the flair of its counterpart.
For those seeking exposure to the Magnificent Seven or the latest AI marvels, VOOG is the obvious choice. Yet for the risk-averse, RSP’s diversification and lower valuation may prove the wiser bet. A matter of taste, really.
In the end, both are “set-it-and-forget-it” affairs. If volatility is your companion and tech’s future your faith, VOOG may yet triumph. But I, for one, find RSP’s balance and dividends far more appealing. A most sensible choice, if one can endure the occasional market yawn.
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2026-01-14 09:42