Vanguard Health Care ETF yields 1.70% with a 0.09% expense ratio, surpassing SPDR Biotech ETF’s 0.30% yield and 0.35% fee.
The Vanguard Health Care ETF (VHT) offers a 1.70% yield and a 0.09% expense ratio, making it more cost-effective than the SPDR S&P Biotech ETF (XBI), which yields 0.30% and charges 0.35%. VHT provides broad exposure to 411 healthcare sector holdings, including large-cap leaders like Eli Lilly and Johnson & Johnson, while XBI focuses narrowly on 151 biotechnology firms with a modified equal-weighting strategy.
VHT’s diversified approach includes pharmaceuticals, equipment manufacturers, and healthcare services, tracking its benchmark passively. Over the trailing 12 months, VHT has paid $4.70 per share. XBI, launched with a higher-risk profile, targets smaller biotech companies but carries greater volatility due to its concentrated sub-industry focus.
Investors face a choice between VHT’s lower-cost, diversified healthcare exposure and XBI’s targeted, higher-risk biotech bet. The funds’ differing strategies cater to varying risk appetites and sector preferences.