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

Designed to provide broad exposure to the Health Care ETFs category of the market, the Invesco S&P 500 Equal Weight Health Care ETF (RSPH) is a smart beta exchange traded fund launched on 11/01/2006.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

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 sponsored by Invesco. It has amassed assets over $688.49 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

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.

It has a 12-month trailing dividend yield of 0.79%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Healthcare sector - about 100% of the portfolio.

Looking at individual holdings, Moderna Inc (MRNA) accounts for about 1.82% of total assets, followed by Cardinal Health Inc (CAH) and Universal Health Services Inc (UHS).

RSPH's top 10 holdings account for about 17.56% of its total assets under management.

Performance and Risk

So far this year, RSPH has lost about -3.38%, and is down about -7.84% in the last one year (as of 08/12/2025). During this past 52-week period, the fund has traded between $26.81 and $32.53.

RSPH has a beta of 0.82 and standard deviation of 15.82% 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) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $14.74 billion in assets, Health Care Select Sector SPDR ETF has $32.11 billion. VHT has an expense ratio of 0.09% and XLV changes 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

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This article originally published on Zacks Investment Research (zacks.com).

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