Which Healthcare ETF Is the Better Buy: VanEck's Pharma PPH or State Street's Biotech XBI?
PPH offers the income and stability of proven pharmaceutical leaders while XBI swings for the fences across 155 smaller biotech names.
Overview
The VanEck Pharmaceutical ETF (NASDAQ:PPH) offers concentrated exposure to established global drugmakers and higher yields, while the State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) provides a diversified, higher-volatility play on smaller-cap biotechnology innovation.
Both funds offer paths into the healthcare sector but serve very different roles in a diversified portfolio. One focuses on the established stability and cash flows of global pharmaceutical giants, while the other captures the high-risk, high-reward nature of early stage biotechnology research. This analysis examines which profile fits your strategy.
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.