Related: These ETFs are Ready to Rebound
Investors seeking high-quality exposure to the health care industry have a number of options available, including XLV, the iShares U.S. Healthcare ETF (NYSEArca: IYH) and Vanguard Health Care ETF (NYSEArca: VHT).
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.
“The Healthcare Select Sector SPDR ETF, has been range-bound since mid-2015, underperforming the S&P broader market as political rhetoric ramped up against the pharmaceutical and biotechnology industries from presidential candidates, as well as Congress, on the issue of high drug prices. Speculators have been using the political noise as a backdrop to take short positions against the sector,” adds Seeking Alpha.
Health Care Select Sector SPDR