RSPH Overview

Joseph Terranova's Trade: Joseph Terranova from Virtus Investment Partners selected Apple Inc. as his final trade, highlighting its fiscal fourth-quarter revenue of $102.47 billion, which surpassed analyst expectations.

Bryn Talkington's Trade: Bryn Talkington of Requisite Capital Management chose the Invesco S&P 500 Equal Weight Health Care ETF as her final trade, noting a slight decline in its share price.

Jason Snipe's Trade: Jason Snipe from Odyssey Capital Advisors picked Palo Alto Networks, which is expected to report earnings of 89 cents per share for its fiscal first quarter 2026, reflecting growth from the previous year.

Jenny Van Leeuwen Harrington's Trade: Jenny Van Leeuwen Harrington of Gilman Hill Asset Management selected Western Union, which recently reported better-than-expected third-quarter earnings and saw a significant increase in its share price.

S&P 500 Performance: The S&P 500 has seen a 9% return this year with dividends reinvested, following significant gains of 25% in 2024 and 26.3% in 2023, despite a 15% decline earlier in 2025 due to tariff announcements by President Trump.

Sector Underperformance: A ranking of total returns for the 11 sectors of the S&P 500 through July 30, 2025, highlights that while the index has rebounded, certain sectors continue to underperform.

ETF Performance: The Invesco S&P 500 Equal Weight Health Care ETF is down approximately 1.4%, with notable declines in shares of Moderna (down 4.2%) and Zimmer Biomet Holdings (down 3.9%).

Market Commentary: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Earnings Season Focus: The market is shifting attention from macroeconomic factors to upcoming earnings reports from major companies, with analysts predicting a 4% profit growth for the S&P 500 in Q3 and a more optimistic 14.6% increase for Q4.

Investment Strategy Insights: Experts suggest diversifying away from tech stocks towards cyclical sectors like financials and materials, while also recognizing the resilience of top tech companies despite concerns over high valuations and crowded trades.

Healthcare Sector Performance: Eli Lilly's stock has surged nearly 60% this year due to the popularity of GLP-1 drugs, while the broader healthcare sector is recovering from a decline in earnings following the end of the Covid-19 vaccine boom. The Health Care Select Sector SPDR ETF (XLV) is up about 12% in 2024, with expectations for a 20% increase in earnings by 2025.

Investment Opportunities: Analysts suggest looking beyond major players like Lilly and Novo Nordisk, highlighting potential in companies such as Amgen, AstraZeneca, and Sanofi, driven by aging populations and ongoing innovation. Additionally, the political landscape appears less threatening for the healthcare industry, which may benefit investors seeking stability.

Invesco S&P 500 Equal Weight Health Care ETF: The Invesco S&P 500 Equal Weight Health Care ETF (RSPH) offers broad exposure to the health care sector, has a low expense ratio of 0.40%, and aims to match the performance of the S&P 500 Equal Weight Health Care Index, with significant assets totaling over $941 million.

Investment Considerations: While RSPH has shown positive returns, investors may also consider other ETFs like Vanguard Health Care ETF and Health Care Select Sector SPDR ETF, which have lower expense ratios and larger asset bases, providing alternative options for those seeking cost-effective investments in the health care sector.