Cap-weighted ETFs like IVV are not fully passive, actively rebalancing to outperform RSP.

From Yahoo Finance: 2025-06-30 10:15:00

Cap-weighted ETFs are not fully passive, actively rebalancing to overweight rising stocks and underweight declining ones. IVV outperformed RSP in price appreciation and total return over the past 10 years, with a 249.28% total return compared to RSP’s 164.91%. Investors should maintain diversification and risk management aligned with their risk tolerance.

Cap-weighted ETFs like IVV naturally rebalance by overweighting rising stocks and underweighting declining ones. IVV delivered a 197.97% price rise over 10 years, compared to RSP’s 126.68%. Factoring in reinvested dividends, IVV had a 65.39% 3-year total return, 120.73% 5-year total return, and 249.28% 10-year total return.

Comparing iShares S&P 500 Cap Weighted ETF to Invesco S&P 500 Equal Weighted ETF shows the former’s clear advantage. The iShares ETF had a 249.28% 10-year total return, outperforming RSP. Active management through cap-weighted ETFs can offer investors better returns than purely passive strategies.



Read more at Yahoo Finance: You Might Be More of an Active Investor Than You Think