Invesco’s RSPH or iShares’ IBB: Which Healthcare ETF Is the Better Long-Term Buy?

Axe Cap view

RSPH or IBB: Choosing Your Healthcare Play

RSPH’s steady, broad healthcare exposure suits most investors while IBB’s biotech focus demands a higher risk appetite.

If you’re weighing healthcare ETFs on the JSE radar through a global lens, Invesco’s RSPH and iShares’ IBB offer distinct routes. RSPH spreads bets evenly across healthcare sectors, providing a smoother ride with less volatility, a modest 0.6% dividend yield, and lower fees (0.4%). It’s the safer bet if you prefer consistent returns without the biotech roller coaster. IBB, on the other hand, bets heavily on biotech firms like Gilead and Amgen, and it’s recently rewarded daring investors with a 35% return but at the cost of higher risk and larger drawdowns. For South Africans, the USD/ZAR angle is critical—biotech-inspired US dollar strength can pressure the rand, so hedge accordingly. If you lean toward risk, biotech’s potential momentum is tempting; if not, equal-weight RSPH fits better. Of course, a biotech setback or regulatory surprise could undo IBB’s gains quickly, so keep your stops in mind. this is just our opinion and not financial advice