Vanguard Health Care vs. VanEck Pharmaceutical: How Do These ETFs Stack Up?
VHT offers broad diversification across 429 healthcare holdings, while PPH concentrates on 26 drugmakers for higher growth potential.
Overview
VanEck Pharmaceutical ETF (NASDAQ:PPH) offers concentrated exposure to global drugmakers, while Vanguard Health Care ETF (NYSEMKT:VHT) provides a much broader, lower-cost entry point into the diverse healthcare landscape.
Both funds target the resilient healthcare industry but from different angles. VHT tracks the whole sector, from biotech to hospitals, while PPH focuses specifically on the pharmaceutical industry. For investors, this choice boils down to a preference for broad diversification versus a targeted bet on drug manufacturers.
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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Originally published at www.fool.com.