This Healthcare ETF Is Outperforming the Invesco Equal Weight Fund -- and It Offers a Charitable Twist
Key Points
Simplify Health Care ETF has significantly outperformed Invesco S&P 500 Equal Weight Health Care ETF over the trailing 12 months.
Invesco S&P 500 Equal Weight Health Care ETF offers a lower expense ratio and larger assets under management (AUM).
Simplify Health Care ETF is an actively managed fund that donates its net profits to charity and maintains a more concentrated portfolio.
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.
Snapshot (cost & size)
| Metric | PINK | RSPH |
|---|---|---|
| Issuer | Simplify | Invesco |
| Share price (as of 8/10/26) | $40.41 | $36.01 |
| Expense ratio | 0.51% | 0.4% |
| 1-yr return (as of 8/10/26) | 42.1% | 28.3% |
| Dividend yield | 0.6% | 0.6% |
| Beta | 0.73 | 0.78 |
| AUM | $389 million | $788 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.
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.
Performance & risk comparison
| Metric | PINK | RSPH |
|---|---|---|
| Max drawdown (4 yr) | (18.8%) | (17.1%) |
| Growth of $1,000 over 4 years (total return) | $1,596 | $1,284 |
What's inside
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%. It was launched in 2006. 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%. It was launched in 2021. 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.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Let’s start with the similarities between the PINK and RSPH ETFs. Both pay about a 0.6% dividend yield, which probably won’t appeal to income investors. Both also have displayed similar volatility, with betas around 0.7 to 0.8 and max drawdowns of nearly 19% and 17%, respectively, over the last four years. They also hold a similar total number of stocks.
One of the primary differences between the two funds is how they weight their holdings. Like its name implies, the Invesco Health Care Fund is an equal-weight ETF, meaning all of its 60 holdings hold the same amount of sway over the direction of the index — that’s why each of its top three holdings is right around 2%. This weighting strategy reduces concentration risk and negates the ability of mega- or large-cap companies to dominate the fund. The fund tracks the S&P 500 Equal Weight Health Care Index, which holds healthcare companies within the S&P 500 index.
The Simplify Health Care ETF is market-cap weighted, meaning larger companies naturally make up a larger share of the overall index. This means you’re making a pretty big bet on Eli Lilly, Thermo Fisher, and Purecycle, which combined comprise about a quarter of the overall fund. Its tracking index is also different, seeking to provide investors “multi-cap exposure to groundbreaking and innovative companies in biotech, medtech, gene therapy, and other fast growing health care related sectors." And this approach seems to be working, judging by the fund’s one-year price appreciation. Plus, there’s a bonus to investing in the PINK ETF that may appeal to investors: It’s a 100% pro bono ETF that donates its net profits to the Susan G. Komen Foundation. As of June 30, 2026, it has donated $450,000.
Between the two funds, PINK stands out for its superior recent performance, and its unique pro bono status may appeal to ESG investors.
Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly, Thermo Fisher Scientific, and Veeva Systems. The Motley Fool has a disclosure policy.