4 min read
By Ron Koren, ETF Insider


Exchange-Traded Funds (ETFs) have become a staple in the world of investing, offering a diverse range of options to suit different strategies and preferences. In this article, we will delve into a comprehensive comparison between two prominent ETFs: IBB (iShares Nasdaq Biotechnology ETF) and FXH (First Trust Health Care AlphaDEX Fund). We'll explore key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

IBB Vs FXH: Overview

The IBB and FXH ETFs belong to distinct sectors within the healthcare industry. IBB focuses on biotechnology companies, while FXH is centered around healthcare companies in general. This difference in focus translates into varying exposures and investment opportunities, which we will delve into in the following sections.

IBB Vs FXH: Sectors and Top Holdings

The IBB ETF provides exposure to biotechnology giants like Amgen, Gilead Sciences, and Moderna. These companies are known for their cutting-edge research and innovation in the biotech space. In contrast, FXH encompasses a broader range of healthcare companies, including pharmaceuticals, medical equipment, and healthcare services. Understanding the sectors and top holdings helps investors align their portfolio with their preferred area of healthcare investment.

IBB  overlap IBB VS FXHIBB overlap IBB VS FXH

IBB Vs FXH: Capitalization and Strategy

With a substantial asset under management (AUM), IBB reflects the strong investor interest in the biotech sector. The strategy of IBB revolves around capitalizing on the growth potential of biotech companies and their innovative advancements. On the other hand, FXH employs the AlphaDEX methodology, which focuses on selecting healthcare stocks based on fundamental factors like value, growth, and momentum. The variance in capitalization and strategy presents investors with distinct risk-reward profiles to consider.

IBB Vs FXH: Tracking and Exposure

IBB aims to track the performance of the Nasdaq Biotechnology Index, providing exposure to a diverse range of biotech companies. FXH, on the other hand, tracks the StrataQuant Health Care Index, which utilizes the AlphaDEX methodology to select healthcare stocks based on specific factors. This difference in tracking methods results in contrasting levels of exposure to the biotech and broader healthcare sectors.


IBB and FXH offer unique investment opportunities within the healthcare industry, catering to different investment preferences and risk appetites. For investors seeking in-depth insights into holdings, correlations, overlaps, and more, the ETF Insider app stands as the ultimate tool. With its user-friendly interface, the app provides comprehensive information on these ETFs and various other financial instruments, empowering investors to make well-informed decisions.

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

iShares Nasdaq Biotechnology ETF (IBB) Overview. (URL)
First Trust Health Care AlphaDEX Fund (FXH) Overview. (URL)
Nasdaq Biotechnology Index Fact Sheet. (URL)
StrataQuant Health Care Index Methodology. (URL)

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  • Why is IBB better than FXH?

    IBB may be considered better than FXH for some investors due to its specific focus, offering diversification.

  • Does FXH beat IBB?

    FXH's performance relative to IBB will vary over time, depending on market conditions.

  • Should I invest in IBB or FXH?

    The choice between IBB and FXH should align with your investment goals, risk tolerance, and desired exposure.

  • Are IBB and FXH good investments?

    Both IBB and FXH can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between IBB and FXH?

    The correlation between IBB and FXH can vary over time, reflecting differences in performance.