BBH vs. XPH: Which Healthcare ETF Is Better for Beginners?
Broader diversification and lower volatility set these healthcare ETFs apart, with each fund targeting a distinct segment of the industry.
Overview
The State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) offers broader exposure and lower historical volatility than the VanEck Biotech ETF (NASDAQ:BBH), which relies on a smaller group of biotechnology leaders.
While both funds offer targeted exposure to the healthcare sector, they differ significantly in their concentration and specific industry focus. BBH tracks a top-heavy index of 25 industry leaders, whereas XPH uses a broader sampling of 65 holdings across the pharmaceutical development and manufacturing spectrum.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Originally published at www.fool.com.