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IHE's concentrated pharma holdings delivered 50% returns over one year, while RSPH's equal-weight healthcare approach generated 29%. Risk profiles differ sharply too.
The Invesco S&P 500 Equal Weight Health Care ETF (RSPH) was launched on 11/01/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Health Care ETFs category of the market.
Invesco Nasdaq Biotechnology ETF has a lower expense ratio but higher price volatility than Invesco S&P 500 Equal Weight Health Care ETF. Invesco S&P 500 Equal Weight Health Care ETF holds fewer stocks but uses an equal-weighting strategy to diversify across the large-cap healthcare sector.
The Invesco S&P 500 Equal Weight Health Care ETF provides broad exposure to the sector, while the State Street SPDR S&P Pharmaceuticals ETF focuses specifically on the pharmaceutical industry. The State Street SPDR S&P Pharmaceuticals ETF has significantly outperformed over the last year, though it carries higher concentration risk and historical volatility.
RSPH's valuation gap versus market weight peers has narrowed but not closed, with expected returns now roughly similar to XLV. RSPH's mid-cap tilt could in my opinion benefit more than XLV from falling financing costs if the Fed moves toward rate normalization. Annualized volatility for RSPH sits at 15.67%, close to XLV's 15.46%, limiting the diversification benefit of holding both.
Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Health Care ETF (RSPH), a passively managed exchange traded fund launched on November 1, 2006.
FHLC's 0.08% expense ratio and market-cap approach delivered stronger returns, while RSPH's equal-weight strategy offers lower volatility and broader diversification across 60 holdings.
IXJ offers a higher dividend yield and lower volatility with global exposure, while RSPH's equal-weight approach posted a stronger 1-year return.
SEC filings for RSPH aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.