IHE vs. BBH: Which Healthcare ETF Is the Better Buy Right Now?
BBH offers concentrated exposure to biotech, while IHE provides higher income with lower volatility by focusing on established drugmakers.
Overview
Comparing the iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) and the VanEck Biotech ETF (NASDAQ:BBH) reveals two distinct fund profiles. IHE tracks established, blue chip pharmaceutical companies, while BBH zeroes in on the research-intensive biotech space. Here's how those different strategies stack up in terms of cost, yield, and risk.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
The two funds are priced competitively -- BBH carries a 0.35% expense ratio, while IHE charges 0.38%. There’s a bigger difference when it comes to income. IHE offers a notably higher yield, with a full 1-percentage-point advantage over BBH.
Source
Originally published at www.fool.com.