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VanEck Pharmaceutical ETF and Invesco Biotech ETF target different health bets
VanEck charges a 0.36% expense ratio versus 0.58% for Invesco, and its trailing-12-month dividend payout is higher at $2.17 per share.
Two healthcare-focused ETFs offer different ways to express a view on life sciences, with VanEck Pharmaceutical ETF emphasizing established drugmakers and Invesco Biotechnology & Genome ETF targeting higher-growth biotech and genomics names, The Motley Fool reports.
According to the outlet, the VanEck fund concentrates on 27 pharmaceutical companies and aims for lower historical volatility, while the Invesco ETF holds 31 U.S. companies selected using factors such as momentum and earnings growth, with both funds tracking their segments through distinct index methodologies.
Cost and income characteristics differ as well. The Motley Fool says VanEck’s expense ratio is 0.36% compared with 0.58% for Invesco, and VanEck has paid $2.17 per share over the trailing 12 months, implying a 1.9% yield based on a recent share price around $112.74.
In contrast, the outlet notes Invesco has paid $1.55 per share over the trailing 12 months, which translates to a 1.6% yield using a recent share price near $93.84. The funds launched in 2011 for VanEck and 2005 for Invesco, respectively.