PBE vs. RSPH: Is a Biotech ETF or Equal-Weight Healthcare ETF the Better Choice for Investors?

Healthcare investors often choose between targeting high-growth sub-sectors or capturing the broader market.

The Invesco Biotechnology & Genome ETF (NYSEMKT:PBE) provides a concentrated approach to the biotech industry, while the Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) offers broader exposure with lower volatility. Here's how the two compare on the most important factors for investors.

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.

RSPH is more affordable in terms of fees with a lower expense ratio than PBE. Investors seeking income may prefer PBE, however, as it offers a substantially higher dividend yield.

Growth of $1,000 over 5 years (total return)

RSPH tracks the S&P 500 Equal Weight Health Care Index , providing exposure to 63 holdings. Its largest positions include Moderna at 4.40% of assets, Veeva Systems at 2.51%, and Charles River Laboratories International at 2.23%.

Because it's an equal-weight fund, the largest holdings make up roughly the same share of the portfolio as the smaller holdings. The fund was launched in 2006 and has paid $0.23 per share in dividends over the trailing 12 months.

PBE is more concentrated, holding just 33 companies within the Dynamic Biotech & Genome Intellidex Index based on factors like earnings growth and price momentum. Its largest positions include Biogen , Gilead Sciences , and Natera . The fund was launched in 2005 and has paid $1.55 per share in dividends over the trailing 12 months.

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PBE and RSPH both cover healthcare-related stocks, but their differences in breadth and focus can be a deciding factor for investors choosing between the two.

RSPH focuses on large-cap healthcare stocks that are listed in the S&P 500. While it holds only 63 stocks, its diversification across the broader healthcare sector offers greater variety than the hyper-focused PBE. Also, because RSPH is an equal-weight fund, that can provide more stability since no single stock has the ability to significantly sway