RSPT
Invesco S&P 500 Equal Weight Technology ETF
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You hit the nail on the head. That is exactly what is happening. To make it worse, you are paying a premium for that second jacket. When you buy both, you are paying two different management fees to hold the exact same top positions: \[[1](https://www.reddit.com/r/ETFs/comments/ummgke/why_is_fund_overlap_an_issue/)\] **VOO (S&P 500)**: Costs a rock-bottom **0.03%** expense ratio. **QQQ (Nasdaq-100)**: Costs **0.20%** expense ratio. By adding QQQ on top of VOO, you are actively paying **nearly 7 times more** in fees for QQQ's portion just to double-down on Microsoft, Apple, Nvidia, Amazon, and Meta. **The Same Fabric** **Top 5 Holdings**: Microsoft, Apple, Nvidia, Amazon, and Meta. **What happens**: These five stocks already make up roughly 25%+ of VOO. In QQQ, they make up over 40%. **The Result**: Your 50/50 portfolio isn't diversified; it is just a super-concentrated bet on a handful of tech executives **The Only True Difference** **What QQQ adds**: A tiny 6% sliver of Nasdaq-exclusive stocks (like mid-cap biotech or tech firms not yet in the S&P 500). **What QQQ drops**: You completely lose exposure to the S&P 500’s financials (JP Morgan), energy (Exxon), healthcare (Johnson & Johnson), and industrials (Caterpillar) on that portion of your money. **How to Actually Fix It** If your goal is to actually add a *different* fabric to your portfolio rather than just overlapping large-cap US equities, you have a few structural options: **For Small/Mid-Cap Exposure**: Pair VOO with an un-overlapped fund like **AVUV**or **IJR** (Small-Cap Value) to capture the bottom of the market. **For Sector Diversification**: If you want tech but want to avoid the exact same top 5 stocks, look into an equal-weighted tech ETF like **RSPT**, where every tech stock gets the same slice. **For True Diversification**: Keep VOO as your core, drop QQQ, and add international exposure (**VXUS**) or bonds (**BND**) depending on your time horizon. Source: Gemini Ai
RSPT up over 5% today. This is quite a tech rally.
So full disclosure, I really only buy LEAPS Calls on ETFs with good 3-month momentum. So I really don't 'play' any tickers for premium harvesting. I just place long bets on things that are going up. That said, a main idea of my post was that if you're selling CSPs or CCs, *it's probably best if you do it on something that's going up.* Don't even look at IV, and certainly don't search for it as a ticker to sell premium against. **Be directional** and you'll have better outcomes. So all that said, here's what I'm in right now: CHAT, CIBR, MTUM, RSPT, SOXX, SPMO, VLUE, XLK I plotted[ DRAM, FOTO, and AIPO against each other](https://stockanalysis.com/etf/compare/dram-vs-foto-vs-aipo/), and here's my thoughts. But keep in mind that I go long, and don't just sell Puts and hope it doesn't go down: I wouldn't be in **FOTO** because it's negative on the 3-month and 1-month. **AIPO** has had a good 3 months, but its 1m is flattening, so I'd be thinking about finding something better. Now **DRAM**, that's been incredible. And I was in it some weeks ago, but it's just too volatile for me. Look at it [compared to SOXX](https://stockanalysis.com/etf/compare/dram-vs-soxx/). Change the view to the 3m. **SOXX** has been more of an escalator, while DRAM has been more of a rollercoaster. And at 85% over the past 3 months, SOXX gives *plenty* of return. Just my thoughts, but a lot of things work.
> there's not much you can do Buying better ETFs is an option. Market cap weighted indices worked for a long time, but there's now so many better options for investors that reduce concentration/use fundamentals (eg: GARP, RSPT, FNDX, AVUS).
I'd advise against discretionaries at this time. It's just not the regime. That's for when the market is quiet and peaceful. People are hella conservative when market conditions aren't so great. Would advise going with the midcaps as opposed to the Russell. So something like IJH instead. RSPT and SMH aren't bad either right now, if you still believe in the AI infra trade. FWIW, I have existing positions in AXP/BLK/MSFT, albeit underwater. They're just holds for me. I've tried some bank stocks like BAC as well, but they haven't been so great. I might just give up on them after the umpteenth time of trying to play them. YMMV.
Tech carries SPY, RSPT even better than Nasdaq today.
probably look at RSPT - equal-weight tech index, seems like a good risk-reward...shouldn't fall as much as the most high-flying semis when a down market materializes.
Hi there, I'm 19 years old and began investing last September 2023. I wanted to get some feedback on my current positions in my ROTH IRA. QQQ - 50% VGT - 20% QTUM - 10% RSPT - 10% CIBR - 10% My current contributions are $580 per month, and I aim to max out my ROTH IRA contributions yearly. I also recently opened an individual brokerage account and put in $500. I plan to invest the first $500 in VXIAX and then start investing in some individual stocks like aapl, msft, and nvda. I prefer the tech sector as I am quite young but would love some input on my current portfolio and suggestions.
I may be stupid,but moving forward I am more a fan of RSPT style ETFs that aren't so driven by just 7 companies with overlapping business models.
I think the reason for this is the sector allocation between tech and non-tech. Currently VOO is much higher % tech than RSP and recently tech has been driving a lot of the gains in both. For that reason, I am not a fan of RSP/EQAL as an alternative to VOO. However, I do think there should/could be some benefit in using individual sector equal weight funds like RSPF or RSPD or RSPT. What is the ideal allocation between the sectors? Is it the current allocation that you would find in VTI or VOO? hmmm.... Who could determine that?? Has that been determined?? If one accepts the unchallenged greatness of VTI or VOO, then they contain the magic true best allocation ratios between the various sectors. But how much utilities (for example) do you want to own if your goal is to maximize long term gains over a 10+ year horizon? How much basic materials? VTI says you should have 2.5% materials, while RSP has 4.4% materials. VTI has 28% tech and RSP has 15% tech. --- WHICH is best????
That is an excellent point. I'm noticing that and I'm a big fan of Nvidia. I have a significant holding of pure NVDA. However, I'm planning to hold QQQM and FTEC in addition to RSPT. And the Invesco equal weight funds, based on SP Global indexes rebalance quarterly. The next is 3rd Friday in Sept. based on the prior Friday's weights. I know right now it does seem true that the equal weight scheme hurts, but there are many other tech companies included in the 66. Who can predict which companies will do well the rest of the year or in 2024 or 2025... (no one knows)
> It looks like there isn't a clear winner in terms of historical performance With VOO/RSP maybe, but VGT has crushed RSPT since it was established in November 2006, +848% to +540%. It's not close. Equal weight punishes stocks performing well and rewards stocks doing poorly. Right now the yearly rebalanced "equal weight" etf XNTK is benefiting from NVDA being its largest holding at 5.94% while total turdball QCOM is at 1.96%. Come the start of next year (if the market were to be similar to how it has been) XNTK's performance will tank as NVDA's share will will be shrunk nearly in half and all the underperforming crap like QCOM, JD, PDD and TXN will increase by more than 50%. In XNTK's case this isn't so bad because of the yearly rebalance, but its worse for those funds that quarterly rebalance.
Have you looked at other Invesco EW funds in the sectors like RSPT? I like that option. But I'm interested in what others have to say about it.
I've been wondering about this as well. The main issue with specifically RSP vs SPY is that the sector allocations are very different in ways that I don't particularly like. I actually want to lean into tech and RSP, as you note, does the opposite. However, you can get sector EW funds like RSPT that is purely tech yet equally weighted for the tech companies in the S&P 500. So, I like the idea of something like a mix of RSPT and VGT/FTEC or QQQ(M). Like I said, I like tech.