Which Healthcare ETF Is the Better Buy: Vanguard's VHT or iShares' IXJ?
VHT charges low fees and holds more than 400 stocks for broader diversification. IXJ's portfolio of 110 holdings includes international exposure -- but comes at a higher cost.
Overview
Investors often turn to healthcare for a mix of defensive stability and growth potential. Both of these funds target that sector, but they take slightly different approaches. The iShares Global Healthcare ETF (NYSEMKT:IXJ) provides worldwide exposure to healthcare stocks, while the Vanguard Health Care ETF (NYSEMKT:VHT) offers a cheaper, deeper portfolio of mostly U.S. companies.
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.
Details
VHT is the less expensive option, with a rock-bottom 0.09% expense ratio compared to IXJ's 0.38%. VHT also offers a slightly higher dividend yield of 1.55% versus IXJ's 1.44%.
Source
Originally published at www.fool.com.