Which Healthcare ETF Is the Better Buy: Vanguard's VHT or Fidelity's FHLC?
One basis point separates these two healthcare funds. Here is why the bigger decision is whether to own healthcare at all.
Overview
The Vanguard Health Care ETF (NYSEMKT:VHT) and the Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provide nearly identical core exposure to the U.S. healthcare market with distinct differences in asset scale and expense structure.
Investors seeking broad healthcare exposure often compare VHT and FHLC. Both ETFs track market-cap-weighted indexes of U.S. healthcare stocks, providing a diverse mix of pharmaceuticals, biotechnology, and medical equipment providers. While they target the same market segment, variations in liquidity, fund age, and underlying index methodology may influence which fund fits a particular portfolio 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.