Health Care ETFs: XLV Delivers Low Fees and Solid Returns
Explore how portfolio concentration and stock count set these healthcare ETFs apart, impacting risk and diversification for investors seeking sector exposure.
Health Care ETFs: XLV Delivers Low Fees and Solid Returns
Overview
Choosing between the State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) and the iShares U.S. Healthcare ETF (NYSEMKT:IYH) often comes down to a preference for lower fees versus broader diversification.
Both funds provide concentrated exposure to the U.S. healthcare market, encompassing pharmaceutical giants and medical technology companies. While they share top holdings like Eli Lilly and Co. (NYSE:LLY), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV), differences in cost and market-cap concentration could significantly impact long-term results.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr 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.
