Better Healthcare ETF: Vanguard's VHT vs. State Street's Pharmaceuticals-Focused XPH
Vanguard's broader healthcare portfolio charges less and yields more, but State Street's pharma-focused fund has delivered stronger recent gains despite higher volatility.
Overview
Comparing the Vanguard Health Care ETF (NYSEMKT:VHT) and State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) involves choosing between broad healthcare sector coverage and a concentrated focus on pharmaceutical industry players.
These two funds represent different ways to play the healthcare market. While the Vanguard fund casts a wide net across insurers, equipment providers, and biotechnology, the State Street fund targets the drug manufacturing industry specifically. Investors often use these vehicles to capture defensive qualities and innovation-driven growth.
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.
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