SPDR Health Care ETF Tops iShares Biotech in Long-Term Returns

State Street’s Health Care Select Sector SPDR ETF charges an expense ratio of 0.08%, materially lower than the 0.44% expense ratio on the iShares Biotechnology ETF. The 36 bps advantage (0.44% − 0.08%) is a cost headwind tailwind for long-term investors, but the note is largely comparative with limited immediate market impact.

Analysis

State Street’s Health Care Select Sector SPDR ETF charges an expense ratio of 0.08%, materially lower than the 0.44% expense ratio on the iShares Biotechnology ETF. The 36 bps advantage (0.44% − 0.08%) is a cost headwind tailwind for long-term investors, but the note is largely comparative with limited immediate market impact.