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

Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Health Care ETF (RSPH) provides investors broad exposure to the Health Care ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.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.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is managed by Invesco. RSPH has been able to amass assets over $751.81 million, making it one of the average sized ETFs in the Health Care ETFs. RSPH seeks to match the performance of the S&P 500 EQUAL WEIGHT HEALTH CARE INDEX before fees and expenses.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 ExpensesCost 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 on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.It has a 12-month trailing dividend yield of 0.72%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 100% of the portfolio, the fund has heaviest allocation to the Healthcare sector.Looking at individual holdings, Waters Corp (WAT) accounts for about 2.06% of total assets, followed by Cardinal Health Inc (CAH) and Eli Lilly & Co (LLY).RSPH's top 10 holdings account for about 19.46% of its total assets under management.Performance and RiskThe ETF return is roughly 8.84% so far this year and it's up approximately 7.46% in the last one year (as of 12/18/2025). In the past 52-week period, it has traded between $26.81 and $32.55RSPH has a beta of 0.84 and standard deviation of 14.73% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk .AlternativesInvesco 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 State Street Health Care Select Sector SPDR ETF ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $17.19 billion in assets, State Street Health Care Select Sector SPDR ETF ETF has $40.31 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 ETFsBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Equal Weight Health Care ETF (RSPH): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks