State Street Health Care ETF Tops Invesco Pharma on Cost and Size
Compare sector breadth, yield, and recent performance as these two healthcare ETFs take different approaches to growth and income.
Overview
The State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) provides broad, low-cost exposure to the entire healthcare sector, whereas the Invesco Pharmaceuticals ETF (NYSEMKT:PJP) offers a concentrated bet on 29 specific pharmaceutical companies.
Investors seeking healthcare exposure often weigh broad-market efficiency against niche industry concentration. While both funds operate within the healthcare space, they differ significantly in their scope. The SPDR fund tracks a diversified index of large-cap healthcare stocks, while the Invesco fund homes in on the drug manufacturing and research segment.
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.
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Source
Originally published at www.fool.com.