Equity: U.S. Health Care

PSCH Top Performer Intra-day
Price $116.82
Today’s Change -0.72%
4:00pm 04/19/2018
PTH Bottom Performer Intra-day
Price $79.41
Today’s Change -1.57%
3:51pm 04/19/2018

ETF.com Insight

With 11 ETFs and over $27.94B in combined AUM, the Equity: U.S. Health Care segment provides exposure to the U.S. space with a focus on Health Care securities.

Year-to-date, the best-performing ETF in the segment is the PowerShares S&P SmallCap Health Care Portfolio (PSCH), with a total return of 19.44%. Meanwhile, the most popular ETF is the Health Care Select Sector SPDR Fund (XLV) with $15.47BB in assets under management.

Investors should take a look at the Vanguard Health Care ETF (VHT). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Vanguard Health Care ETF tracks the MSCI U.S. Investable Market Health Care 25/50 Index, which includes health care stocks pulled from the top 98% of the total US stock market capitalization. VHT has an expense ratio of 0.10% and tracks the MSCI US Investable Market Health Care 25/50 Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Health Care segment is 94 out of 100, with the Fidelity MSCI Health Care Index ETF(FHLC) obtaining the highest rating of 100 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.36% per year, with the Fidelity MSCI Health Care Index ETF (FHLC) having the lowest expense ratio, charging investors 0.08% yearly.

Investors should look for funds with tight tracking, such as the Vanguard Health Care ETF (VHT), with a 12-month median tracking difference of -0.09%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Health Care segment is 90 out of 100, with the Health Care Select Sector SPDR Fund(XLV) obtaining the highest rating of 99 out of 100.

The Health Care Select Sector SPDR Fund (XLV) is the undisputed segment leader when it comes to liquidity. The fund trades 672.18M in daily average volume. Investors should also find ample liquidity in the Vanguard Health Care ETF (VHT), with $25.23M in daily dollar volume.

Use limit orders to trade funds such as the iShares Edge MSCI Multifactor Healthcare ETF(HCRF), due to their double-digit market spreads.

ETF.com/ Block Liquidity

XLV
5
4
3
2
1
FXH
5
4
3
2
1
IYH
5
4
3
2
1
VHT
5
4
3
2
1
FHLC
5
4
3
2
1
RYH
5
4
3
2
1
PSCH
5
4
3
2
1
PTH
5
4
3
2
1
JHMH
5
4
3
2
1
BTEC
5
4
3
2
1
HCRF
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Thomson Reuters US Healthcare has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to VHT. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, BTEC follows a Fundamental strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology