Related: Good News for Healthcare ETFs
VHT provides similar exposure to XLV, except the Vanguard option includes a broader 340 component holdings, compared to XLV’s smaller 58 stock portfolio. Additionally, VHT has a cheaper 0.09% expense ratio, compared to XLV’s 0.14% expense ratio. However, the Vanguard Health Care ETF is much less actively traded, showing an average daily volume of about 300,000 shares, according to Morningstar data.
Alternatively, investors who want to specifically target these areas may also look to ETF options like the iShares U.S. Medical Devices ETF (NYSEArca: IHI) or SPDR S&P Health Care Equipment ETF (NYSEArca: XHE). Both IHI and XHE are comprised of medical devices and health care equipment stocks.
While biotech and pharmaceuticals stocks have flailed this year, medical device makers have been one of the sturdier corners of the healthcare sector.
For more information on Healthcare ETFs, visit our Healthcare category.
Health Care Select Sector SPDR