Which Is the Better Healthcare ETF: First Trust's High-Conviction FBT or Vanguard's Low-Cost VHT?
FBT surged 51.6% in one year but carries higher risk and costs. VHT offers broader diversification at a fraction of the expense ratio.
Overview
The First Trust NYSE Arca Biotechnology Index Fund (NYSEMKT:FBT) provides concentrated, high-conviction exposure to biotechnology firms, while the Vanguard Health Care ETF (NYSEMKT:VHT) offers a cheaper, diversified basket across the entire healthcare sector.
Both funds target the healthcare space, but their scopes and strategies differ wildly. Investors choosing between them must decide if they want a specialized bet on biotechnology or a broader investment that includes pharmaceuticals and medical equipment. This analysis breaks down the cost, risk, and portfolio differences between the two products.
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.