The Invesco S&P 500 Equal Weight ETF (RSP) takes a different approach to indexing. Instead of letting the giants dominate, every company in the S&P 500 gets the same weight, giving smaller firms just as much sway as mega-cap household names. That structure naturally diversifies the portfolio, spreading risk more evenly across industries and market caps.
| Rank | Symbol | Company | % Weight |
|---|---|---|---|
| 1 | WBD | Warner Bros. Discovery, Inc. | 0.31% |
| 2 | INTC | Intel Corporation | 0.27% |
| 3 | SNPS | Synopsys, Inc. | 0.25% |
| 4 | PSKY | Paramount Skydance Corporation | 0.25% |
| 5 | AMAT | Applied Materials, Inc. | 0.24% |
| 6 | TSLA | Tesla, Inc. | 0.24% |
| 7 | LRCX | Lam Research Corporation | 0.24% |
| 8 | ALB | Albemarle Corporation | 0.23% |
| 9 | STX | Seagate Technology Holdings plc | 0.23% |
| 10 | KLAC | KLA Corporation | 0.23% |
| 11 | AAPL | Apple Inc. | 0.23% |
| 12 | APP | AppLovin Corporation | 0.22% |
| 13 | WDC | Western Digital Corporation | 0.22% |
| 14 | IT | Gartner, Inc. | 0.22% |
| 15 | TER | Teradyne, Inc. | 0.22% |
| 16 | MU | Micron Technology, Inc. | 0.22% |
| 17 | CRWD | CrowdStrike Holdings, Inc. | 0.22% |
| 18 | VLO | Valero Energy Corporation | 0.22% |
| 19 | CNC | Centene Corporation | 0.22% |
| 20 | CAT | Caterpillar Inc. | 0.22% |
| 21 | IBM | International Business Machines Corporation | 0.22% |
| 22 | FSLR | First Solar, Inc. | 0.22% |
| 23 | HAL | Halliburton Company | 0.22% |
| 24 | EXE | Expand Energy Corporation | 0.22% |
| 25 | NSC | Norfolk Southern Corporation | 0.21% |
For investors, the appeal is balance. While traditional S&P 500 funds, such as SPY and VOO, heavily lean on Apple, Microsoft, and NVIDIA, RSP ensures that no single company exceeds approximately 0.3% of the fund’s assets. That means one stock’s stumble won’t drag down the whole portfolio nearly as much as it would in a cap-weighted ETF.
The top 25 holdings show just how this works in practice. Instead of only seeing the usual tech suspects, industrials like Norfolk Southern, energy producers like Valero, and chipmakers like Synopsys and Intel all rise to the top. To dig deeper, let’s take a closer look at RSP’s top three names and what they bring to the table.
1. Warner Bros. Discovery (WBD)
Warner Bros. Discovery has emerged as RSP’s largest holding, thanks to its equal-weighted structure rather than its sheer market capitalization. The company owns a diverse portfolio of content assets, ranging from HBO and Warner Bros. Studios to Discovery’s extensive network of lifestyle channels. This mix gives WBD a powerful media footprint, even as cord-cutting and streaming competition reshape the industry.
What stands out is the turnaround story. Since its merger, WBD has been focused on cutting costs, reducing debt, and integrating its content libraries into a single streaming offering. Execution hasn’t been flawless, but the firm has managed to stabilize subscriber growth while monetizing through advertising and licensing.
For RSP investors, WBD represents exposure to media on a scale that rarely appears in the top slots of cap-weighted ETFs. Equal weighting gives this mid-sized entertainment player a significant presence at the table, highlighting the distinctiveness of its portfolio compared to SPY or VOO.
2. Intel (INTC)
Intel, once the undisputed leader in semiconductors, has spent much of the last decade playing catch-up to competitors like AMD, NVIDIA, and TSMC. But the company remains one of the largest chipmakers in the world, with deep roots in data center, PC, and networking markets. Its manufacturing push in the U.S. and Europe, backed by government subsidies, could be a long-term catalyst.
Financially, Intel has had a mixed run. Margins have been under pressure, and the company is incurring significant expenses to expand its foundry capabilities. Yet the sheer scale of Intel’s operations and its relevance to national security make it a critical piece of the semiconductor supply chain.
As part of RSP, Intel reminds investors that equal-weight exposure often emphasizes legacy players that are in transition. If Intel’s turnaround is successful, shareholders could see significant upside. If not, it’s a small slice of RSP that ensures limited downside impact.
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3. Synopsys (SNPS)
Synopsys is less well known than Intel or WBD, but it’s a hidden powerhouse in semiconductor design. The company provides electronic design automation (EDA) software that chipmakers rely on to design, test, and verify their products. In short, Synopsys is the “picks and shovels” of the chip boom.
Its business model is sticky, with recurring revenue from software licenses and services. As AI, cloud computing, and advanced nodes demand ever more complex chips, Synopsys’ role becomes more essential. The firm has consistently grown earnings and free cash flow, with its stock hitting record highs in recent years.
In RSP, Synopsys showcases how equal weighting shines a light on companies that don’t often make headlines but are indispensable to global technology infrastructure. It’s the kind of holding that diversifies the portfolio in ways cap-weighted ETFs can’t.
What RSP Really Owns
RSP’s holdings demonstrate what equal weighting really means: no single company drives performance. Its top names, WBD, Intel, and Synopsys, aren’t the megacap giants we see in SPY or QQQ, but mid-tier players with unique roles in their industries. That balance helps protect investors from concentrated risks.
By leaning into sectors like media, semiconductors, and industrials, RSP captures a broader slice of the U.S. economy. The trade-off is that returns may lag during megacap tech rallies, but the diversification can shine when leadership rotates to other parts of the market.
Key Insights
- Equal Weighting Changes the Game: Unlike SPY or VOO, no single stock drives RSP performance. Every company gets ~0.2–0.3% weight, meaning leadership rotates more evenly across sectors.
- Mid-Caps Get Their Moment: Names like Warner Bros. Discovery, Synopsys, and Albemarle climb higher in RSP than in cap-weighted indexes, giving investors exposure to companies that usually fly under the radar.
- Sector Balance Feels Different: Tech still matters, but industrials, energy, and health care all have more meaningful representation. That creates a portfolio less dependent on mega-cap tech.
- Performance Trade-Off: RSP may lag when the Apples and NVIDIAs of the world dominate rallies. However, when smaller and mid-cap stocks outperform, equal weighting often yields stronger relative returns.
Why You Should Invest In RSP
RSP isn’t about betting on the giants, it’s about giving equal weight to all 500 companies in the index. That approach ensures investors get true diversification, with media firms, industrials, and energy producers rubbing shoulders with tech titans. For those concerned about concentration risk in funds like SPY or VOO, RSP provides a refreshing alternative.
The flip side is performance. Equal weighting has historically lagged cap-weighted S&P 500 funds during strong bull markets led by megacaps. But it has also shown resilience in environments where smaller and mid-cap names take the lead. That’s why many investors use RSP as a complement rather than a replacement for traditional S&P 500 ETFs.
Ultimately, RSP offers a different way to “own the market.” It spreads the spotlight beyond the biggest names, making space for companies like Warner Bros. Discovery, Intel, and Synopsys to take center stage. For long-term investors, that broader exposure can help smooth returns and reduce reliance on just a handful of giants.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
