Better Healthcare ETF: Invesco's Biotech-Focused IBBQ vs. iShares' Broad IYH
IBBQ offers concentrated biotech exposure with lower costs and stronger recent returns, while IYH provides broader sector diversification and higher dividend income.
Overview
The Invesco Nasdaq Biotechnology ETF (NASDAQ:IBBQ) offers a lower-cost, concentrated play on biotech and pharma, while the iShares U.S. Healthcare ETF (NYSEMKT:IYH) provides broader sector exposure and a higher dividend yield.
Both funds provide targeted access to the medical sector, yet they differ significantly in scope. The Invesco fund focuses narrowly on the Nasdaq-listed biotechnology space, whereas the iShares fund casts a wider net across the entire domestic healthcare landscape, including providers and equipment manufacturers.
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.