PBE vs. RSPH: Is a Biotech ETF or Equal-Weight Healthcare ETF the Better Choice for Investors?
Key Points
PBE offers a higher dividend yield and has delivered stronger one-year total returns.
RSPH offers a more affordable expense ratio and a significantly lower historical drawdown.
The two funds differ in their scope and diversification, which can appeal to different investing goals.
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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.
Snapshot (cost & size)
| Metric | PBE | RSPH |
|---|---|---|
| Issuer | Invesco | Invesco |
| Share price (as of Sept. 15, 2026) | $92.89 | $36.72 |
| Expense ratio | 0.59% | 0.40% |
| 1-yr return (as of Sept. 15, 2026) | 36.1% | 26.5% |
| Dividend yield | 1.60% | 0.62% |
| Beta (5Y monthly) | 0.79 | 0.81 |
| Assets under management (AUM) | $470.6 million | $832.8 million |
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.
Performance & risk comparison
| Metric | PBE | RSPH |
|---|---|---|
| Max drawdown (5 yr) | -37.8% | -22.0% |
| Growth of $1,000 over 5 years (total return) | $1,269 | $1,214 |
What's inside
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.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
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
performance.
PBE offers less diversification with its more targeted focus on biotechnology stocks. This ETF has experienced a deeper max drawdown than RSPH, suggesting more severe volatility over the last five years. However, it's also outperformed RSPH in 12-month total returns.
The right choice for you will depend on your investing goals. RSPH offers greater stability with its broader, equal-weight approach, which can appeal to investors seeking exposure to large-cap healthcare stocks across the industry. PBE, on the other hand, offers more targeted exposure to a niche subsector of the market. While this ETF can be more prone to volatility, it can also help fill smaller gaps in your portfolio.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences, Moderna, Natera, and Veeva Systems. The Motley Fool recommends Biogen. The Motley Fool has a disclosure policy.
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