Which Biotech ETF Is a Better Buy: Concentrated Bet or Broad Basket?
VanEck's concentrated 25-stock approach offers higher individual company exposure, while Invesco's broader 251-position portfolio delivered 47.4% returns over the past year.
Overview
The Invesco Nasdaq Biotechnology ETF (NASDAQ:IBBQ) offers lower costs and broader market diversification, while the VanEck Biotech ETF (NASDAQ:BBH) provides a more concentrated investment in 25 leading biotechnology companies.
Both funds target the healthcare sector, specifically focusing on pharmaceutical and biotechnology firms involved in drug discovery. While they share several core positions, their index strategies differ significantly in breadth, with one fund selecting only the top 25 companies and the other capturing over 250 names across the Nasdaq market.
Details
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.
Source
Originally published at www.fool.com.