Which iShares Healthcare ETF Is the Better Buy: Diversified IXJ or Biotech-Focused IBB?
IBB delivered 44% returns in one year but swung 40% lower at its worst. IXJ grew steadily with half the volatility and a 1.5% dividend yield.
Overview
Choosing between iShares Global Healthcare ETF (NYSEMKT:IXJ) and iShares Biotechnology ETF (NASDAQ:IBB) involves a trade-off between broad healthcare stability and the high-growth, high-volatility nature of biotechnology.
For investors seeking to navigate the healthcare sector, understanding whether to prioritize broad-market stability or sub-sector growth is essential for portfolio construction. While both utilize a passive strategy, their underlying benchmarks result in different experiences regarding price swings and income potential for long-term holders.
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.