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.
Related: These ETFs are Ready to Rebound
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.
“One reason is that the January/February decline just barely dropped below the September swing low, showing a lack of downside strength. The price then rallied and erased all of the January/February decline, which shows momentum is currently on the side of the bulls,” adds Investopedia.
For more information on Healthcare ETFs, visit our Healthcare category.
Health Care Select Sector SPDR
