Adding a Healthcare Stock to Your Portfolio? FHLC Offers Broad Coverage While PPH Leads in Returns.
Key takeaways
- This comparison examines how these two approaches differ in cost, volatility, and dividend performance.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- FHLC is significantly more affordable with an expense ratio of 0.08% compared to 0.36% for PPH.
Investors must decide whether to cast a wide net across the entire sector with a fund like the Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) or zoom in on the specific economics of drug manufacturing with an investment in Van Eck Pharmaceutical ETF (NASDAQ:PPH). This comparison examines how these two approaches differ in cost, volatility, and dividend performance.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
FHLC is significantly more affordable with an expense ratio of 0.08% compared to 0.36% for PPH. However, PPH has offered a higher payout, with a trailing-12-month dividend yield of 2.10% versus 1.40% for the Fidelity fund.