The Simplify Health Care ETF (NYSEMKT:PINK) offers active management and a philanthropic mission, while the Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) provides low-cost, equal-weight exposure to large-cap healthcare. Healthcare remains a cornerstone of many portfolios for its defensive qualities and growth potential. Investors choosing between these two funds must decide between an actively managed strategy with concentrated bets and a disciplined, equal-weighted approach that limits individual stock risk across the S&P 500's healthcare names.
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.
The Invesco S&P 500 Equal Weight Health Care ETF is the more affordable option with a 0.4% expense ratio, compared to 0.51% for the Simplify Health Care ETF. Both funds currently offer a matching 0.6% dividend yield. Growth of $1,000 over 4 years (total return) Invesco S&P 500 Equal Weight Health Care ETF allocates a minimum of 90% of assets to the common stocks of its underlying benchmark.
Its portfolio of 60 holdings is roughly 98% healthcare and 2% technology. Its largest positions include Charles River Laboratories International at 2.3%, Veeva Systems at 2.2%, and Bio-Techne at 2%. Invesco S&P 500 Equal Weight Health Care ETF has paid $0.23 per share over the trailing 12 months, which on its recent ~$36.01 share price works out to a 0.6% yield.
Simplify Health Care ETF is designed for capital appreciation through pioneering companies. Its 51 holdings are distributed across healthcare at 87%, industrials at 7%, and consumer cyclical names at 5%. Its largest positions include Eli Lilly at 10.1%, Thermo Fisher Scientific at 7.2%, and Purecycle Technologies at 7%.
Simplify Health Care ETF has paid $0.25 per share over the trailing 12 months, which on its recent ~$40.41 share price works out to a 0.6% yield. This fund is pro bono, donating net profits to the Susan G. Komen foundation; it also employs a currency hedge.
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