Should You Invest in the Invesco S&P 500 Equal Weight Health Care ETF (RYH)? – Yahoo Finance

If you're interested in broad exposure to the Healthcare – Broad segment of the equity market, look no further than the Invesco S&P 500 Equal Weight Health Care ETF (RYH), a passively managed exchange traded fund launched on 11/01/2006.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $1.01 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare – Broad segment of the equity market. RYH 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.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.62%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector–about 100% of the portfolio.
Looking at individual holdings, Moderna Inc (MRNA) accounts for about 1.70% of total assets, followed by Universal Health Services Inc (UHS) and Align Technology Inc (ALGN).
The top 10 holdings account for about 16.37% of total assets under management.
Performance and Risk
The ETF has added about 2.43% so far this year and is down about -2.44% in the last one year (as of 01/16/2023). In that past 52-week period, it has traded between $249.96 and $315.41.
The ETF has a beta of 0.87 and standard deviation of 23.20% for the trailing three-year period, making it a medium risk choice in the space. With about 65 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Health Care ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RYH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $17.33 billion in assets, Health Care Select Sector SPDR ETF has $41.58 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.
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 Zacks ETF Center.
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Invesco S&P 500 Equal Weight Health Care ETF (RYH): ETF Research Reports
Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
Vanguard Health Care ETF (VHT): ETF Research Reports
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