Equity: U.S. Health Care Providers & Services

IHF Top Performer Intra-day
Price $143.83
Today’s Change +0.93%(0.65)
3:59pm 08/21/2017
XHS Bottom Performer Intra-day
Price $58.87
Today’s Change +0.31%(0.53)
3:35pm 08/21/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

The U.S. Health Care Providers & Services segment has long been dominated by IHF. With over 7 years of operating history and a substantial AUM, IHF was virtually unchallenged until SPDRIHF was virtually unchallenged until SPDR launched XHS launched XHS in 2011. XHS is a cheaper, equal-weighted alternative to IHF's plain-vanilla market cap-weighted exposure.
Each fund differs in exposure to the various sectors within the Health Care Providers & Services segment—IHF's positions in managed health care and life & health insurance are roughly twice those of XHS's. Meanwhile, XHS allocates much more of its portfolio to healthcare facilities & services. Both funds tilt smaller than our benchmark, particularly XHS.
Although IHF charges more than XHS, it tracks its index better and is far more liquid, so all-in costs for the funds could easily be a wash depending on the holding period. Overall, IHF provides the most market-like exposure to the industry. Considering the combination of its exposure, high Efficiency and Tradability, IHF is our analyst pick for the segment. (Insight updated 08/21/17)

All Funds (2)

IHF $544.67 M 544674140 Tracks index well

A 72
E
93
93
T
91
91
F
72
72

XHS $96.25 M 96250770 Equal-weighted

B 44
E
94
94
T
73
73
F
44
44

ETF.com Grade as 08/17/17

Equity: U.S. Health Care Providers & Services

1 Year Total Return NAV
Performance  [as of 08/18/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: Thomson Reuters US Healthcare Providers & Services-0.98%6.75%19.67%25.60%18.05%22.07%--
A 72.051586IHF544674140IHFiShares U.S. Healthcare Providers ETF-3.83%3.10%14.17%14.32%10.45%17.35%10.09%
B 43.750696XHS96250770XHSSPDR S&P Health Care Services ETF-7.88%-1.71%11.71%6.05%5.04%14.64%--
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

XHS charges less in management fees than IHF. Still, when considering IHF's excellent tracking of its index, total holding costs may be a wash between the two funds.
IHF's AUMXHS charges much less than IHF places it safely in profitable territory. While XHS scores low in closure risk, its AUM should be monitored.
On the tax front, IHF has never paid out capital gains distributions since its 2006 launch. XHS, on the other hand, paid out short-term capital gains at the end of 2012 and again in 2014. (Insight updated 08/21/17)

All Funds (2)

94
94.356543
93
92.552759

ETF.com Grade as 08/17/17

Equity: U.S. Health Care Providers & Services

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
IHF iShares U.S. Healthcare Providers ETF 0.44% -0.40% -0.34% -0.46% 20.00% / 39.60% Low 92.552759
XHS SPDR S&P Health Care Services ETF 0.35% -0.29% -0.21% -0.37% 20.00% / 39.60% Low 94.356543

ETF.com Tradability Insight

IHF crushes XHS on liquidity, trading at much higher median daily volumes and tighter spreads. Still, both funds should suffice for everyday buy-and-hold investors. Be sure to use limitIHF crushes XHS on liquidity. orders and check iNAV before hitting the buy or sell button.
Both funds score well in block liquidity, though underlying volume is low enough that block trades are likely to move underlying prices. IHF might be easier to trade at the institutional level, due to its strong secondary liquidity that can facilitate large trades. (Insight updated 08/21/17)

All Funds (2)

91
90.772712
73
72.903665

ETF.com Grade as 08/17/17

Equity: U.S. Health Care Providers & Services

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
IHF iShares U.S. Healthcare Providers ETF $2.69 M 0.07% 0.36 100.00% 0.36% 0.00% None 90.772712
XHS SPDR S&P Health Care Services ETF $402.36 K 0.17% 0.13 100.00% 0.25% 0.01% None 72.903665
Spread History
Premium/Discount History

ETF.com/ Block Liquidity

IHF
5
4
3
2
1
XHS
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

Neither of the U.S. Health Care Providers & Services funds fits our benchmark very well—partly because neither focuses solely on healthcare facilities and managed healthcare, theNeither fund perfectly captures the broad space two sectors that dominate the industry.
Compared to the benchmark, the two funds are far more sector diverse. IHF is the broader of the 2 funds, spreading out its exposure beyond facilities and managed healthcare, reaching into sectors like life & health insurance and drug retailers. XHS focuses heavily on facilities, leaving less weighting to other sectors.
IHF, like our benchmark, uses market-cap weighting while XHS equally weights its portfolio, which diminishes the weights of the biggest companies. IHF, with major holdings in both Express Scripts and UnitedHealth Group, comes closer to mimicking our benchmark. XHS's equal-weighting scheme significantly reduces the fund's weighted average market cap to a small fraction of the benchmark's. (Insight updated 08/21/17)

All Funds (2)

72
72.051586
44
43.750696

ETF.com Grade as 08/17/17

Equity: U.S. Health Care Providers & Services