Construction path:
RSPH equal-weight broad healthcare IBBQ modified-cap biotech dormant rail
ETF construction plumbing: RSPH vs IBBQ divergence A shared methodology source forks into two construction rails; each passes through concentration, volatility, liquidity, and suitability gates, diverging further at each stage. Index methodology sets the exposure path RSPH: equal-weight S&P 500 healthcare quarterly rebalance ~59 names · pharma/device/payer/services IBBQ: modified-cap Nasdaq biotech/pharma top 10 ~50% ~260 names · cap-tilted concentration weighting → concentration Top 5 ≈ 10% weight spread across ~59 names Top 10 ≈ 50% cap-tilted into few mega-caps divergence widens concentration → volatility Lower vol diversification dampens ~20-22% annualized biotech-beta swings fee + AUM + ADV → liquidity Fee 0.40% AUM $769M ADV ~200K Fee 0.19% AUM ~$78-81M ADV ~15K risk tolerance + holding size → suitability Core diversified broad healthcare sleeve Sized satellite biotech-beta tilt, position-sized

Toggle the construction path above. The active rail carries flow through every gate; the dormant rail is shown at rest, so the divergence at concentration, volatility, liquidity, and suitability reads side by side.