Which Healthcare ETF Is the Better Buy: Invesco’s Broad RSPH or First Trust’s Biotech FBT?
Invesco S&P 500 Equal Weight Health Care ETF (NYSEMKT:RSPH) offers broad healthcare exposure at a lower cost, while First Trust NYSE Arca Biotechnology Index Fund (NYSEMKT:FBT) provides a more concentrated biotechnology focus.
Investors looking for healthcare exposure face a choice between the narrow, high-octane world of biotechnology and the broader healthcare sector. While the First Trust fund tracks a specific biotechnology index, RSPH covers the entire healthcare space within the S&P 500, using an equal-weighting strategy to mitigate concentration risk.
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.
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