Which Healthcare ETF Is the Better Buy: State Street’s Pharma Fund XPH or iShares’ Biotech Fund IBB?

详细摘要

XPH charges less and pays a higher yield, but IBB manages over 20 times the assets across a far broader set of research-driven biotech names.

State Street SPDR S&P Pharmaceuticals ETF (NYSEMKT:XPH) and iShares Biotechnology ETF (NASDAQ:IBB) both offer targeted healthcare exposure, but they differ significantly in sub-sector focus, asset size, and cost structure.

Healthcare investors often choose between biotech and pharmaceutical companies based on risk tolerance and capital growth goals. While State Street SPDR S&P Pharmaceuticals ETF tracks mature pharmaceutical companies, iShares Biotechnology ETF focuses on the more research-intensive biotechnology space. This comparison evaluates how these different mandates affect costs and portfolio construction.

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.

The State Street SPDR S&P Pharmaceuticals ETF is the more affordable option, charging 0.09 percentage points less in annual fees than the iShares Biotechnology ETF. It also provides a higher trailing payout for income-focused investors.

State Street SPDR S&P Pharmaceuticals ETF holds 61 stocks, primarily in the healthcare sector. Its largest positions include Xeris Biopharma Holdings (NASDAQ:XERS) at 4.12%, Veradermics (NYSE:MANE) at 2.99%, and Septerna (NASDAQ:SEPN) at 2.59%. It was launched in 2006. The fund has paid $0.27 per share over the trailing 12 months, which on its recent ~$67.93 share price works out to a 0.4% yield.

iShares Biotechnology ETF manages a much larger portfolio of 243 holdings focused entirely on healthcare. Top holdings include Gilead Sciences (NASDAQ:GILD) at 8.97%, Amgen (NASDAQ:AMGN) at 8.31%, and Vertex Pharmaceuticals (NASDAQ:VRTX) at 7.73%. It was launched in 2001. The fund has paid $0.34 per share over the trailing 12 months, which on its recent ~$217.18 share price works out to a 0.2% yield.

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