Better Healthcare ETF: Vanguard's Broad VHT vs. the iShares Biotechnology-Focused IBB
VHT offers broad sector exposure, while IBB concentrates on biotech with higher growth but steeper drawdowns.
Overview
Comparing the Vanguard Health Care ETF (NYSEMKT:VHT) and iShares Biotechnology ETF (NASDAQ:IBB) involves weighing a broad, low-cost healthcare core against a more concentrated, higher-fee play on biotechnology innovation.
Both funds provide exposure to the healthcare sector, yet they serve different roles. The Vanguard fund captures the entire industry, from pharmaceutical giants to medical device makers, while the iShares fund zooms in on biotech companies engaged in drug discovery and genetic research.
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.