Should You Bet Big on Drugmakers? VanEck Pharmaceutical ETF vs. Invesco Healthcare ETF Compared.
PPH offers concentrated pharma exposure with 1.9% yield and lower volatility, while RSPH provides broader diversification across 60 healthcare holdings.
Overview
The Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) offers broad, equal-weighted sector exposure, while the VanEck Pharmaceutical ETF (NASDAQ:PPH) provides a cheaper, concentrated play on global drug manufacturers.
Healthcare investors often choose between targeted subsectors or broad industry diversification. These two funds represent different paths: The VanEck fund homes in on pharmaceutical giants, whereas the Invesco fund equal-weights the entire healthcare spectrum within the S&P 500 to mitigate single-stock concentration.
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-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.