FXH VS IXJ

Exchange-Traded Funds (ETFs) have transformed the investment landscape, presenting investors with diversified exposure to a wide array of sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: FXH (First Trust Health Care AlphaDEX Fund) and IXJ (iShares Global Healthcare ETF). Throughout the following sections, we'll delve into essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methodologies, and exposure.

FXH Vs IXJ: Overview

FXH and IXJ are two distinct ETFs that provide exposure to the healthcare sector. However, their approaches to achieving this exposure vary significantly. FXH employs the AlphaDEX methodology, which involves selecting healthcare stocks based on multiple factors. On the other hand, IXJ tracks an index of global healthcare companies, offering broader international exposure within the sector. Let's explore these differences in more detail.

FXH Vs IXJ: Sectors and Top Holdings

The FXH ETF is centered around the healthcare industry, but it takes a more sophisticated approach to stock selection. It identifies and ranks stocks based on growth and value factors, leading to a portfolio that may differ from traditional healthcare benchmarks. In contrast, IXJ provides exposure to an extensive array of healthcare companies across developed and emerging markets. Analyzing the sectors and top holdings of each ETF can provide valuable insights into their underlying strategies.

FXH overlap FXH VS IXJ

FXH Vs IXJ: Capitalization and Investment Strategy

FXH and IXJ exhibit differences in terms of capitalization and investment strategy. While both ETFs have substantial assets under management (AUM), FXH's approach is characterized by actively selecting and weighting stocks based on factors such as growth and value. IXJ, on the other hand, passively tracks an index, aiming to replicate the performance of global healthcare companies. Investors should consider these divergent strategies when evaluating potential returns and risks.

FXH Vs IXJ: Tracking Methodology and Exposure

The tracking methodologies employed by FXH and IXJ contribute to their distinctive exposure profiles. FXH's AlphaDEX methodology involves screening and ranking stocks based on various metrics, leading to a unique portfolio composition within the healthcare sector. Conversely, IXJ aims to mirror the performance of an established healthcare index, providing comprehensive exposure to a broad spectrum of companies. Understanding these tracking approaches is crucial for investors seeking to align their investments with specific goals.

Conclusion

FXH and IXJ exemplify the diversity of investment options within the healthcare sector. While FXH employs a factor-based methodology to select and weight stocks, IXJ offers a passive approach that captures the performance of a global healthcare index. For investors seeking deeper insights into holdings, correlations, overlaps, and other relevant information, ETF Insider stands as an invaluable tool. With its user-friendly application, ETF Insider enables users to gain comprehensive insights into these ETFs and other financial instruments.

Disclaimer: This article is intended for informational purposes only and does not offer investment advisory services.

Sources:

https://www.ssga.com/ FXH ETF issuer
https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-portfolio-long-term-corporate-bond-etf-splb FXH ETF official page

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