
- Cap-weighted ETFs are not fully passive. They actively overweight rising stocks and underweight declining ones through constant rebalancing.
- Over the past 10 years, IVV (cap-weighted) significantly outperformed RSP (equal-weight) in both price appreciation and total return.
- IVV delivered a 249.28% 10-year total return versus RSP’s 164.91%.
- While these ETFs show strong performance, investors should maintain diversification and risk management aligned with their personal risk tolerance.