Vanguard Health Care vs. iShares Biotech: How Do These ETFs Stack Up?
Broad healthcare diversification or concentrated biotech growth? Compare cost, risk, and portfolio composition to find your fit.
Overview
Comparing Vanguard Health Care ETF (NYSEMKT:VHT) and iShares Biotechnology ETF (NASDAQ:IBB) reveals a choice between broad sector diversification and specialized exposure to the high-growth biotechnology niche.
Selecting the right vehicle for healthcare exposure depends largely on an investor's tolerance for volatility and their desire for specific subsector growth. The healthcare landscape is vast, ranging from stable pharmaceutical giants to speculative biotech startups. This match-up explores the trade-offs between a broad-based healthcare strategy and a pure-play biotechnology approach, helping you determine which may better suit your long-term financial objectives.
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.