State Street Health Care ETF Tops Invesco Pharma on Cost and Size

Erin Kennedy, The Motley Fool

Sat, July 4, 2026 astatine 11:05 AM CDT 4 min read

The State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) provides broad, low-cost vulnerability to the full healthcare sector, whereas the Invesco Pharmaceuticals ETF (NYSEMKT:PJP) offers a concentrated stake connected 29 circumstantial pharmaceutical companies.

Investors seeking healthcare vulnerability often measurement broad-market ratio against niche manufacture concentration. While some funds run wrong the healthcare space, they disagree importantly successful their scope. The SPDR money tracks a diversified scale of large-cap healthcare stocks, portion the Invesco money homes successful connected the cause manufacturing and probe segment.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Cost is simply a large differentiator here; the State Street money is importantly much affordable with an disbursal ratio of 0.08%. Additionally, it offers a higher payout for income seekers, with a output spread of 0.70 percent points implicit the Invesco ETF.

Performance & hazard examination

What's wrong

The SPDR ETF provides vulnerability crossed healthcare fields including biotechnology, beingness sciences, and wellness technology. Its largest positions see Eli Lilly (NYSE:LLY) astatine 16.72%, Johnson & Johnson (NYSE:JNJ) astatine 10.70%, and AbbVie (NYSE:ABBV) astatine 7.72%. The fund, which holds 59 securities, was launched successful 1998. The SPDR ETF has paid $2.53 per stock implicit the trailing 12 months, which connected its caller ~$158.66 stock terms works retired to a 1.6% yield.

Invesco's ETF focuses specifically connected 29 U.S. pharmaceutical companies progressive successful research, development, and distribution. Eli Lilly (5.22%), Abbott Laboratories (NYSE:ABT) (5.16%), and AbbVie (5.14%) are among its largest positions. The money was launched successful 2005. Invesco's ETF has paid $1.06 per stock implicit the trailing 12 months, which connected its caller ~$118.45 stock terms works retired to a 0.9% yield.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.