Which ETF Is Healthier for Your Portfolio: Vanguard Health Care ETF or iShares Pharmaceuticals ETF?
IHE delivered stronger 5-year returns, but VHT's 0.09% expense ratio and 411 holdings offer broader diversification at lower cost.
Overview
Vanguard Health Care ETF (NYSEMKT:VHT) provides broad-based sector coverage with a significantly lower expense ratio, while iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers concentrated access to domestic drug companies.
Both ETFs provide targeted healthcare exposure, but they differ significantly in scope and cost. While one drills down into the specific mechanics of drug development and distribution, the other casts a wider net across the entire medical ecosystem to capture providers, services, and equipment.
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 as of the close of trading on July 20.
Source
Originally published at www.fool.com.