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.
Is iShares Pharma ETF (IHE) or SPDR's Biotech ETF (XBI) the Better Long-Term Buy for Investors?
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.
