IHE vs. IBB: Which iShares Healthcare ETF Is the Better Buy?
Established pharmaceutical giants have delivered lower volatility and higher income than clinical-stage biotech exposure over the past five years.
Overview
Investors seeking exposure to healthcare innovation often have to choose between the stability of established pharmaceutical giants and the higher-growth, higher-risk profile of clinical-stage biotech firms. This comparison looks at the two popular funds -- the iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) and the iShares Biotechnology ETF (NASDAQ:IBB)-- to see how their differing concentration, volatility, and income potential might fit different long-term strategies.
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
IHE is the cheaper option, with an expense ratio of 0.38% versus 0.44% for IBB. IHE also has a higher dividend, with a yield advantage of 1.26 percentage points over IBB.
Source
Originally published at www.fool.com.
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