RSPH: One Of The Few Equal Weight ETFs I Follow Closely

RSPH's valuation gap versus market weight peers has narrowed but not closed, with expected returns now roughly similar to XLV. RSPH's mid-cap tilt could in my opinion benefit more than XLV from falling financing costs if the Fed moves toward rate normalization. Annualized volatility for RSPH sits at 15.67%, close to XLV's 15.46%, limiting the diversification benefit of holding both. Cooling labor market data and easing energy inflation could open a further discount window, supporting a BUY view on RSPH.

There is an equal weight ETF, on the healthcare segment, that today would seem to be able to benefit from a particular driver: we are talking about the Invesco S&P 500 Eql Wght Health Care ETF (