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.

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.

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

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is sponsored by Invesco. It has amassed assets over $826.52 million, making it one of the average sized 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

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for RSPH are 0.40%, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 0.62%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

For RSPH, it has heaviest allocation in the Healthcare sector --about 100% of the portfolio.

Looking at individual holdings, Charles River Laboratories International Inc (CRL) accounts for about 2.28% of total assets, followed by Veeva Systems Inc (VEEV) and Moderna Inc (MRNA).

RSPH's top 10 holdings account for about 20.15% of its total assets under management.

Performance and Risk

So far this year, RSPH has gained about 17.92%, and is up roughly 29.15% in the last one year (as of 08/31/2026). During this past 52-week period, the fund has traded between $28.40 and $38.03.

The fund has a beta of 0.78 and standard deviation of 15.69% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco S&P 500 Equal Weight Health Care ETF is an excellent option for investors seeking to outperform the Health Care ETFs segment of the market. There are other ETFs in the space which investors could consider as well.

Vanguard Health Care Index Fund ETF Shares (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 Index Fund ETF Shares has $19.27 billion in assets, State Street Health Care Select Sector SPDR ETF ETF has $43.92 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

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

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Invesco S&P 500 Equal Weight Health Care ETF (RSPH): ETF Research Reports

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

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