XLV vs. PJP: How Broad Healthcare Diversification Stacks Up to Pharma Stocks
XLV's broader diversification and lower fees appeal to cost-conscious investors, while PJP's concentrated pharma bet has outperformed over the past year.
Overview
Investors seeking healthcare exposure must decide between the broad diversification of the healthcare sector and a targeted bet on pharmaceutical manufacturers.
The State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) provides broad, low-cost exposure to the total healthcare sector, while the Invesco Pharmaceuticals ETF (NYSEMKT:PJP) offers a more concentrated, industry-specific strategy with higher fees.
Details
This comparison explores how a low-cost sector giant stacks up against a focused industry fund during varying market cycles.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.