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Is Invesco S&P 500 Equal Weight Health Care ETF (RSPH) a Strong ETF Right Now?

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Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Health Care ETF (RSPH - Free Report) provides investors broad exposure to the Health Care ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Invesco. RSPH has been able to amass assets over $751.46 million, making it one of the larger ETFs in the Health Care ETFs. Before fees and expenses, RSPH seeks to match the performance of the S&P 500 EQUAL WEIGHT HEALTH CARE INDEX .

The S&P 500 Equal Weight Health Care Index equally weights stocks in the health care sector of the S&P 500 Index.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.

RSPH's 12-month trailing dividend yield is 0.75%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

RSPH's heaviest allocation is in the Healthcare sector, which is about 100% of the portfolio.

When you look at individual holdings, Cardinal Health Inc (CAH - Free Report) accounts for about 2.02% of the fund's total assets, followed by Dexcom Inc (DXCM - Free Report) and Cencora Inc (COR - Free Report) .

The top 10 holdings account for about 19.26% of total assets under management.

Performance and Risk

So far this year, RSPH has lost about -1.18%, and is down about -5.06% in the last one year (as of 06/09/2025). During this past 52-week period, the fund has traded between $26.81 and $32.53.

RSPH has a beta of 0.83 and standard deviation of 16.12% for the trailing three-year period. With about 62 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Equal Weight Health Care ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $15.27 billion in assets, Health Care Select Sector SPDR ETF has $34.59 billion. VHT has an expense ratio of 0.09% and XLV charges 0.08%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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