Which Healthcare ETF Is the Better Buy: Fidelity's FHLC or Invesco's Equal-Weight RSPH?
FHLC's 0.08% expense ratio and market-cap approach delivered stronger returns, while RSPH's equal-weight strategy offers lower volatility and broader diversification across 60 holdings.
Overview
Investors choosing between Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) and Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) must weigh the lower cost and top-heavy concentration of FHLC against the broader equal-weighted approach of RSPH.
Both funds target the U.S. healthcare sector but use different construction methods. While FHLC provides broad exposure dominated by industry giants, RSPH levels the playing field by giving every S&P 500 healthcare constituent an equal seat at the table regardless of market size.
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.