Better Invesco Healthcare ETF: PJP Targeting Pharmaceuticals vs. RSPH's Broader Sector Lens
PJP's one-year return beats RSPH's, but RSPH offers broader diversification across 61 healthcare holdings at a lower expense ratio.
Overview
The Invesco Pharmaceuticals ETF (NYSEMKT:PJP) focuses on concentrated exposure to drug manufacturers with lower historical volatility, while the Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) provides a more diversified, lower-cost approach to the broader healthcare sector.
Investors seeking healthcare exposure often choose between niche industry concentration and broad sector coverage. This comparison explores two Invesco funds: one that isolates the pharmaceutical industry and another that equal-weights every healthcare constituent in the S&P 500, including medical devices and services firms.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.