VHT vs. XBI: Is Diversified Healthcare Exposure or Biotech Stocks the Smarter Choice for Investors?
VHT offers broad sector exposure with lower volatility, while XBI concentrates on biotech with higher risk and reward. Here's how to decide between the two.
Overview
The Vanguard Health Care ETF (NYSEMKT:VHT) offers broad sector exposure and lower fees, while the State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) provides a concentrated, more volatile play on the biotechnology subsector.
Investors looking for exposure to the medical field often weigh broad sector coverage against niche industry plays. This comparison examines how a diversified giant like VHT stacks up against a more volatile, subsector-focused option like XBI, highlighting differences in risk, cost, and portfolio 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.