XLV vs. IBBQ: Is Broad Healthcare Exposure or Biotech Growth the Better ETF Buy?
IBBQ posted the stronger return over the past year, but has also experienced much higher historical volatility than XLV.
Overview
The State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) provides broad exposure to the S&P 500 healthcare sector, whereas the Invesco Nasdaq Biotechnology ETF (NASDAQ:IBBQ) offers a targeted focus on biotechnology and pharmaceutical companies listed on the Nasdaq.
Investors looking for healthcare exposure must often choose between the stability of a broad, diversified sector fund versus the higher upside -- and higher volatility -- of a narrower, growth-oriented fund. This comparison examines whether XLV's lower costs and track record outweigh the concentrated risk-reward profile of IBBQ.
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-year 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.