RSPC vs XLC

RSPCDInvesco S&P 500 Equal Weight Communication Services ETF

XLCAState Street Communication Services Select Sector SPDR ETF

In short

RSPC Communication services, minus the megacap gravity. RSPC equal-weights the sector's S&P 500 members, so a legacy telecom gets the same slice as the biggest platform. Same sector, very different shape.

XLC Launched in 2018, XLC bottles the communication services corner of the S&P 500: search, social, streaming and the phone companies, in one 0.08% wrapper that trades heavily all day.

Stated mandate

RSPC The fund is based on the S&P 500 Equal Weight Communication Services Plus Index and invests in companies classified in the communication services sector within the S&P 500.

XLC The fund seeks to track, before expenses, the price and yield performance of the Communication Services Select Sector Index.

Why people hold it

• RSPC Equal weight by design: each rebalance resets every holding to the same slice, so the sector's giants don't set the tone the way they do in cap-weighted funds.
• The hunting ground is the S&P 500's communication services names, so it's large, established US companies picked by index rules rather than a manager's hunches.
• Running since 2018 as part of Invesco's equal-weight S&P 500 sector lineup, so the machinery has been through a full market cycle.
• Distributions land on a quarterly schedule, the standard rhythm for an equity sector fund.

• XLC Costs 0.08% a year, a fraction of the typical fund in this sector group and tied with the cheapest of them (FCOM at 0.08%, VOX at 0.09%).
• A multi-billion-dollar fund and one of the busiest tickers in its category, so getting in and out is rarely the hard part.
• Clean, rules-based job: it shadows the Communication Services Select Sector Index closely, one of the tightest implementations in its peer group.ssga.com
• Large-cap only: constituents come from the S&P 500, spanning telecom, media, entertainment and interactive media, with S&P capping rules limiting how big any one name gets.ssga.comspglobal.com

Worth knowing

• RSPC 0.40% a year sits above the category norm and is several times the 0.08% to 0.09% charged by cap-weighted rivals XLC, FCOM and VOX.
• Trading is thin for the category, which can mean wider spreads and more care needed on bigger orders than with the sector's household-name funds.
• Around two dozen holdings: equal weighting spreads the dollars, but communication services is a narrow sector, so one company's stumble still lands.

• XLC This is the most top-heavy neighborhood in the index. Even with capping at rebalance, a few mega-cap internet names set the tone for the whole fund.spglobal.com
• One sector out of eleven in the S&P 500, so it tracks ad budgets, subscriptions and phone bills rather than the broad market.spglobal.com
• FCOM and VOX sit within a penny of the same fee, so the real choice is index breadth: XLC stops at the S&P 500. Distributions come quarterly.ssga.com

Full RSPC profile⁠

Full XLC profile⁠