To The Moon

🌟🌟🌟When the markets are volatile, Healthcare is one of the most resilient sectors as it is an essential service. $Invesco S&P 500 Equal Weight Health Care ETF(RSPH)$ tracks an equal weighted index of US health care companies taken from the S&P500 Index.  Instead of weighting its holdings by market cap, RSPH uses a equal weighting scheme.   RSPH provides a more balanced exposure to other industries within the healthcare sector such as pharmaceuticals, equipment and supplies, healthcare providers and drug retailers.  The ETF and the S&P500 Equal Weighted Healthcare Index are rebalanced quarterly. 

Effective at the close of markets on July 14 2023, RSPH effected a 10 for 1 forward split of its issued and outstanding shares, making the ETF more affordable to investors.  Stock splits have no tangible impact on a company's total value.    

The Top 10 holdings include Resmed Inc, Quest Diagnostics, Moderna, Boston Scientific, Elevance Health, Merck & Co., Cigna Group, Davita Inc, Eli Lilly and McKesson Corp. 

Total 10 holdings weightage is 15.8%.  Total number of holdings is 65.

The expense ratio is 0.40%.  Dividends are paid quarterly.  The current dividend yield is 2.19%.

Performance wise RSPH is up 0.10% today and in the past 5 days, it is down just 0.37%.  Year todate RSPH has dropped 1% and in 2023 it is just up 0.27%.  But if we look at its performance 5 years ago, RSPH has risen 51%.

Wall Street Analysts are bullish on RSPH with a Buy rating, Target price of USD 34.63, an upside potential of 16%.

The Healthcare Industry in the US is massive.  According to the American Medical Association, spending on healthcare was USD 4.3 trillion in 2021.  As the population ages, health care's significance to the economy is expected to grow, offering investors the opportunity to profit from its growth. 

I like $Invesco S&P 500 Equal Weight Health Care ETF(RSPH)$ for its low cost and balanced equal weighted approach to this growing sector.  It includes the best and strongest health care companies in the US with a single stock weightage no more than 2%.  

At the last closing price of USD 29.85 per share it is very affordable for small investors like me.  In contrast $Health Care Select Sector SPDR Fund(XLV)$ is USD 140.58 per share. 

I do not expect fireworks from RSPH but I believe this ETF has the potential to outperform in the future due to the essential role that Healthcare companies have to combat diseases and deal with aging population. 

Investing is after all a marathon, not a sprint.  Slow and steady wins the race. 

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