Which Healthcare ETF Is the Better Buy: iShares' Global IXJ or First Trust's Biotech FBT?
One fund owns the giants of global healthcare, while the other bets on 30 smaller biotech companies.
Overview
iShares Global Healthcare ETF (NYSEMKT:IXJ) offers broad diversification across global healthcare sectors at a lower cost, while First Trust NYSE Arca Biotechnology Index Fund (NYSEMKT:FBT) provides a concentrated bet on biotechnology.
Healthcare investors often weigh the stability of global giants against the high-growth potential of clinical biotechnology. While the First Trust fund tracks a specialized index of biotech companies, the iShares fund captures a global basket of pharmaceutical, equipment, and service providers. This selection creates distinct risk-reward profiles for a healthcare-focused portfolio.
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.