Better Healthcare ETF: Fidelity's Broad, Low-Cost FHLC vs. State Street's XBI Targeting Biotech
Fidelity offers lower costs and steadier returns, while State Street targets smaller biotech companies with higher volatility and recent outperformance.
Overview
The Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provides broad, low-cost exposure to the entire healthcare sector, whereas the State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) offers a narrower, more volatile focus on biotechnology.
Both funds target the healthcare space but with different strategies. The Fidelity fund uses a market-cap-weighted approach across the broad industry, while the State Street fund utilizes an equal-weighted index to capture the potential growth of smaller biotechnology companies.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.