Which Pharmaceuticals ETF Is Better, the iShares IHE or State Street XPH?
IHE concentrates on giants such as Johnson & Johnson and Eli Lilly, while XPH spreads risk across 65 holdings with different volatility profiles.
Overview
The iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers heavy exposure to pharmaceutical giants and a higher yield, while the State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) provides broader, more equal-weighted exposure.
Both funds target the domestic pharmaceutical industry, but they take very different paths to reach that destination. One provides a more equal-weighted view, while the other focuses on the largest market capitalization leaders. This comparison evaluates how these structural differences impact performance, risk profiles, and income potential for investors.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. 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.