Better Pharma ETF: iShares IHE vs. State Street XPH
IHE concentrates 23.6% in Eli Lilly and delivers 1.4% yield, while XPH spreads risk across 62 holdings with a lower 0.35% expense ratio.
Overview
The iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers a concentrated, market cap-weighted approach to drugmakers, while the State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) provides broader, more equal-weighted exposure to the domestic pharmaceutical industry.
Both funds provide targeted exposure to the U.S. pharmaceutical industry, yet this comparison shows that their internal mechanics lead to very different risk profiles. While the iShares U.S. Pharmaceuticals ETF leans heavily into the largest players in the sector, the State Street SPDR S&P Pharmaceuticals ETF spreads its assets across a wider range of 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.