Which Healthcare ETF Is the Better Buy: Invesco's IBBQ or State Street's XPH?
IBBQ offers lower costs and broader diversification, while XPH delivered stronger 1-year returns with less volatility.
Overview
The Invesco Nasdaq Biotechnology ETF (NASDAQ:IBBQ) and State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) both target healthcare innovation but differ in their diversification levels and cost structures.
These two funds provide distinct ways to access the domestic drugmaking and biotech landscape. While XPH offers equal-weighted exposure specifically to the pharmaceutical industry, IBBQ tracks a broader basket of biotechnology and pharmaceutical companies listed on the Nasdaq Stock Market. This analysis explores how their different indexing strategies and risk profiles may fit into a long-term portfolio.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. 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.