XLV VS FXH
Exchange-Traded Funds (ETFs) have revolutionized the investment landscape, providing investors with diverse exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent healthcare ETFs: XLV (Health Care Select Sector SPDR Fund) and FXH (First Trust Health Care AlphaDEX Fund). We will delve into key aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
XLV Vs FXH: Overview
XLV and FXH are two healthcare ETFs that offer distinct investment approaches within the healthcare industry. While XLV provides broad exposure to healthcare companies within the S&P 500, FXH employs a unique stock selection methodology. This article will highlight the differences in their objectives, holdings, and potential returns.
XLV Vs FXH: Sectors and Top Holdings
The XLV ETF covers various healthcare sectors such as pharmaceuticals, biotechnology, and medical equipment. Its top holdings include companies like Johnson & Johnson, Pfizer, and UnitedHealth Group. On the other hand, FXH employs the AlphaDEX methodology, which selects stocks based on various fundamental factors. This approach results in different sector weightings and top holdings, providing investors with a broader perspective on healthcare investing.
XLV overlap XLV VS FXH
XLV Vs FXH: Capitalization and Strategy
XLV is one of the largest healthcare ETFs in terms of assets under management (AUM), reflecting its popularity among investors seeking exposure to established healthcare giants. FXH's strategy, driven by the AlphaDEX methodology, aims to identify companies with favorable fundamental characteristics. This unique strategy may lead to different performance dynamics compared to XLV, making it crucial for investors to understand their risk tolerance and investment objectives.
XLV Vs FXH: Tracking and Exposure
XLV tracks the Health Care Select Sector Index, providing exposure to a broad range of healthcare companies. FXH, on the other hand, seeks to outperform the StrataQuant Health Care Index using its proprietary AlphaDEX strategy. Understanding the tracking methodologies and underlying indices of these ETFs allows investors to assess how closely the ETFs align with their investment goals.
Conclusion
XLV and FXH are distinct healthcare ETFs, each offering a specialized approach to investing in the healthcare sector. To gain deeper insights into their holdings, correlations, overlaps, and other crucial information, investors can rely on the ETF Insider tool. This user-friendly app empowers investors with valuable data and analytics, helping them make informed decisions about their healthcare investments.
Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.
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FAQ
Why is XLV better than FXH?
XLV may be considered better than FXH for some investors due to its specific focus, offering diversification.
Does FXH beat XLV?
FXH's performance relative to XLV will vary over time, depending on market conditions.
Should I invest in XLV or FXH?
The choice between XLV and FXH should align with your investment goals, risk tolerance, and desired exposure.
Are XLV and FXH good investments?
Both XLV and FXH can be suitable investments depending on individual investment strategies, goals, and risk profiles.
What is the correlation between XLV and FXH?
The correlation between XLV and FXH can vary over time, reflecting differences in performance.