VHT vs. PBE: Which Health Care ETF Is the Better Buy?
PBE delivered the better return over the past year, but has experienced greater historical volatility. VHT's more diversified portfolio and rock-bottom fees offer investors a steadier, lower-cost option.
Overview
The Invesco Biotechnology & Genome ETF (NYSEMKT:PBE) offers a focused, high-momentum approach to the biotechnology sector, while the Vanguard Health Care ETF (NYSEMKT:VHT) provides broad, low-cost exposure across the entire healthcare landscape -- from pharmaceutical giants to equipment makers to healthcare providers.
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.
Details
Cost is a major differentiator here. VHT charges just 0.09% a year, versus 0.58% for PBE. The funds’ dividend yields are in the same ballpark, with VHT paying 1.58% and PBE paying 1.73%
Source
Originally published at www.fool.com.