Better Healthcare ETF: State Street's Pharmaceuticals-Focused XPH vs. Invesco's S&P 500-Targeted RSPH
One fund targets pharma exclusively and surged 63% in a year, while the other diversifies across healthcare with lower volatility.
Overview
The State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) and the Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) offer distinct approaches to the healthcare sector, differing in industry focus, weighting methodology, and recent total returns.
While the Invesco fund equal-weights its holdings across the broad healthcare sector to reduce the influence of massive market-cap leaders, the State Street fund targets the specific sub-sector of pharmaceuticals. This comparison looks at how these differing strategies affect costs, risks, and performance for long-term investors.
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.