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Asset Class: Health Sector
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Oldest ETF back tested: The Health Care Select Sector SPDR® Fund (XLV)
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Correlation to U.S. Markets: 0.78
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Long-Term Performance: 8.81% CAGR
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S&P 500 Performance: 7.64% CAGR
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Back test timeframe: January 1999 – June 2021
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Number of ETFs available in this asset class: 45
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Number of ETFs in this asset class that are 10-years old or older: 18
XLV vs SPY: January 1999 – June 2021
XLV vs SPY: December 22, 1998 – July 2, 2021
The Deep Value ETF Accumulator rankings for the 18 oldest Health sector ETFs:
The 4 top ranked Health sector ETFs head-to-head comparisons:
PSCH vs XBI vs FBT vs IHI: May 2010 – June 2021
PSCH vs XBI vs FBT vs IHI: April 7, 2010 – July 2, 2021
Stated objectives of 4 top ranked Health sector ETFs:
PSCH – The Invesco S&P SmallCap Health Care ETF (Fund) is based on the S&P SmallCap 600® Capped Health Care Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to measure the overall performance of common stocks in the health care sector. Included are healthcare companies principally engaged in the business of providing healthcare-related products, facilities and services, including biotechnology, pharmaceuticals, medical technology and supplies. The Index is a subset of the S&P SmallCap 600® Index, which is a float-adjusted, market-capitalization-weighted index reflecting the US small-cap market. The Fund and the Index are rebalanced and reconstituted quarterly.
XBI – The SPDR® S&P® Biotech ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Biotechnology Select IndustryTM Index (the “Index”). Seeks to provide exposure to the Biotechnology segment of the S&P TMI, which comprises the following sub-industries: Biotechnology. Seeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocks
Allows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing.
FBT – The First Trust NYSE Arca Biotechnology Index Fund is an exchange-traded index fund. The investment objective of the Fund is to replicate as closely as possible, before fees and expenses, the price and yield of the NYSE Arca Biotechnology IndexSM. The NYSE Arca Biotechnology IndexSM is an equal dollar weighted index designed to measure the performance of a cross section of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services.
Such processes include, but are not limited to, recombinant DNA technology, molecular biology, genetic engineering, monoclonal antibody-based technology, lipid/liposome technology, and genomics. The index is rebalanced quarterly based upon closing prices on the third Friday in January, April, July & October to ensure that each component stock continues to represent an approximately equal weight in the index.
IHI – The iShares U.S. Medical Devices ETF seeks to track the investment results of an index composed of U.S. equities in the medical devices sector. Exposure to U.S. companies that manufacture and distribute medical devices. Targeted access to domestic medical device stocks. Use to express a sector view.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on Health sector ETFs:
4 Best Long-Term Performance Health Sector ETFs 1.4
Disclosure: We currently own shares of FBT. We intend to sell those shares and buy shares of PSCH in the next 72 hours. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.