Does iShares Pharma ETF Offer Superior Returns to Invesco's Equal Weight Healthcare Fund?
Key PointsiShares U.S. Pharmaceuticals ETF provides concentrated exposure to the pharmaceutical industry, while Invesco S&P 500 Equal Weight Health Care ETF offers broad healthcare exposure with an equal-weight approach.
The iShares U.S. Pharmaceuticals ETF (IHE) and Invesco S&P 500 Equal Weight Health Care ETF (RSPH) both focus on the American healthcare market, but they cater to different investment strategies. IHE concentrates on the pharmaceutical sub-sector using market-cap weighting, while RSPH provides equal-weighted access to the broader healthcare sector, offering a wider range of companies in the sector.
Both funds were established in 2006 and have been tracking the American healthcare landscape ever since. However, their construction methods set them apart. IHE uses market-cap weighting to target the pharmaceutical sub-sector, meaning it gives more weight to larger pharmaceutical companies. In contrast, RSPH employs an equal-weighted approach, assigning roughly equal importance to each healthcare sector constituent.
Beta is a measure of a stock's price volatility in relation to the overall market. It is calculated from monthly returns over the available fund history, up to five years. Since IHE focuses on pharmaceuticals, it may exhibit a different beta than RSPH, which covers a broader range of healthcare companies.
In terms of returns, both funds have delivered strong performance over the past year. IHE's 1-year return represents the total return over the trailing 12 months, while RSPH's return is also based on the trailing 12-month distribution yield as of August 27, 2026. Investors should compare these returns to assess which fund offers superior performance for their investment objectives.
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