XPH vs PJP: Which Pharma ETF Offers Better Value
State Street's lower costs appeal to buy-and-hold investors, while Invesco's concentrated portfolio and lower volatility suit risk-averse income seekers.
Overview
Invesco Pharmaceuticals ETF (NYSEMKT:PJP) provides a concentrated, low-volatility approach to drug manufacturers, while the State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) offers broader sector exposure at a significantly lower annual cost.
Pharmaceutical stocks often attract investors looking for a blend of defensive dividends and growth potential from medical innovation. This comparison looks at two popular ways to access the sector, examining how their different weighting strategies and cost structures could impact long-term portfolio performance and risk.
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.