Is iShares Pharma ETF (IHE) or SPDR's Biotech ETF (XBI) the Better Long-Term Buy for Investors?
Compare risk profiles, sector concentration, and income potential as these two healthcare ETFs take different approaches to growth and stability.
Overview
iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers a more stable, dividend-focused path into healthcare compared to the high-volatility, equal-weighted growth profile of the State Street SPDR S&P Biotech ETF (NYSEMKT:XBI).
Both funds launched in 2006 and provide targeted exposure to specific healthcare niches. While XBI captures the high-risk, high-reward biotech space with a modified equal-weight index, IHE focuses on established pharmaceutical companies, offering a different balance of income and price stability for long-term investors seeking healthcare exposure without the volatility often associated with early-stage clinical trials.
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.