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S&P 500 ETF Choice: VOO’s Tech Tilt or RSP’s Equal-Weight Balance

An equal-weight strategy can curb concentration risk from megacap tech leaders but may temper returns when those stocks surge.

Overview

  • Vanguard’s S&P 500 ETF remains a widely used, low-cost vehicle for broad market exposure.
  • The S&P 500 has delivered nearly 695% in total returns over the past 20 years, according to the article.
  • Because VOO is market-cap weighted, Nvidia, Apple, and Microsoft now account for over 20% of its portfolio.
  • Rising tech concentration can increase volatility for investors seeking a steadier core holding.
  • Invesco’s Equal Weight S&P 500 ETF spreads holdings evenly across all constituents, reducing single-stock influence but potentially muting gains during megacap outperformance.