Does iShares Pharma ETF Offer Superior Returns to Invesco's Equal Weight Healthcare Fund?
IHE's concentrated pharma holdings delivered 50% returns over one year, while RSPH's equal-weight healthcare approach generated 29%. Risk profiles differ sharply too.
Overview
The iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers concentrated, low-beta pharmaceutical exposure, while Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) provides equal-weighted access to the broader healthcare sector at a slightly higher cost.
Both funds launched in 2006 and focus on the American healthcare landscape, but they differ significantly in their construction. iShares U.S. Pharmaceuticals ETF targets the pharmaceutical sub-sector using market-cap weighting, whereas Invesco S&P 500 Equal Weight Health Care ETF captures the entire S&P 500 healthcare sector, assigning roughly equal importance to each constituent.
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-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of the trading day on Aug. 27, 2026.
Source
Originally published at www.fool.com.