Better Buy: Fidelity Health Care ETF (FHLC) or iShares Biotechnology ETF (IBB)?
Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provides broad, low-cost exposure to the healthcare sector, whereas iShares Biotechnology ETF (NASDAQ:IBB) offers a concentrated yet more expensive focus on biotechnology companies.
Biotechnology often acts as a high-beta growth engine within the healthcare space, but it carries distinct volatility risks. iShares Biotechnology ETF tracks this specific segment, while Fidelity MSCI Health Care Index ETF casts a wider net across pharmaceutical and healthcare equipment companies. This comparison explores how their differing scopes influence long-term risk and return.
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: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.