RSP stock: Invesco S&P 500 Equal Weight ETF inflows are soaring

The Invesco S&P 500 Equal Weight ETF (RSP) has underperformed the SPDR S&P 500 ETF (SPY) this year. The RSP ETF has risen by about 5% this year compared to SPY’s gains of over 15%. It has also lagged Invesco QQQ, which has jumped by over 30% this year.

Invesco S&P 500 Equal Weight ETF inflows continue

The Invesco S&P 500 Equal Weight ETF is a popular fund that tracks companies in the S&P 500 index. The main difference is that it tracks the S&P 500 Equal Weight Index (EWI). This index has the same companies in the index but assigns each company a fixed weight. 

As a result, the fund eliminates the situation where a few companies, especially big tech firms, dominate the index. Indeed, most of the gains in the S&P 500 index are attributed to a few companies like Apple, Microsoft, Nvidia, and Meta Platforms.

The RSP ETF has made some inflows this year. In January, the fund added over $1.2 billion followed by $615 million in February. It then suffered three months of outflows and then made a strong comeback in June when it added over $3.8 billion. In all, the fund has grown by more than $3.7 billion this year to over $37 billion.

The Invesco S&P 500 Equal Weight ETF has an expense ratio of 0.20% and a dividend yield of 1.74%. The fund has grown by more than 140% in the past 10 years. Meanwhile, statistics compiled by SeekingAlpha shows that it has a quant rating of 3.85, which is a buy rating.

Its ratings have also been improving. Its momentum, expenses, dividends, risk, and liquidity ratings range from B to A+, which is a good thing. Still, I prefer investing in the SPY ETF since it has momentum for now.

RSP ETF stock price forecast

RSP ETF stock chart

The Invesco S&P 500 Equal Weight ETF stock price has been in a bullish trend in the past few months. It has moved comfortably above the important 50-day and 100-day moving averages. This is a sign that bulls are doing well. 

Most importantly, the RSP fund has moved above the important resistance point at $145.58, the highest level on April 18. Therefore, the outlook of the fund is bullish, with the next key level to watch being at $154.24, the highest point in February. This view will be confirmed if the shares move above $149.15.