XLV vs. PJP: How Broad Healthcare Diversification Stacks Up to Pharma Stocks

Key Points The State Street Health Care Select Sector SPDR ETF (XLV) offers significantly lower ownership costs, with an expense ratio of 0.08% compared to 0.58% for the Invesco Pharmaceuticals ETF (PJP). PJP provides concentrated exposure to 28 pharmaceutical stocks, while XLV holds 61 diversified healthcare companies. XLV delivers a higher trailing dividend yield of 1.49% versus 0.84% for PJP. 10 stocks we like better than Select Sector SPDR Trust - State Street Health Care Select Sector SPDR ETF › Investors seeking healthcare exposure must decide between the broad diversification of the healthcare sector and a targeted bet on pharmaceutical manufacturers.