IXJ vs. RSPH: Which Healthcare ETF Is the Better Buy?
IXJ offers a higher dividend yield and lower volatility with global exposure, while RSPH's equal-weight approach posted a stronger 1-year return.
Overview
Investors choosing between the iShares Global Healthcare ETF (NYSEMKT:IXJ) and the Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) need to weigh the stability of cap-weighted global giants against an equal-weighted, U.S.-only strategy.
While both funds target the same sector, they take very different approaches. RSPH’s equal-weight strategy means every one of its holdings has a roughly equal allocation in its portfolio. IXJ, by contrast, casts a wider net globally and uses traditional market-cap weighting, which favors the largest pharmaceutical companies.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year 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.