HRTS vs XHS

HRTSDTema Heart & Health ETF

XHSAState Street SPDR S&P Health Care Services ETF

In short

HRTS Broad health care funds own insurers, hospitals and dental supply. HRTS narrows to one battlefield: heart and metabolic disease, with at least 80% of assets in companies earning half their revenue there.

XHS Most health care ETFs are pharma funds in disguise. XHS buys the delivery system instead: insurers, hospitals, distributors and clinics, roughly equal weighted so one giant insurer does not run the show.

Stated mandate

HRTS The Fund seeks long-term growth of capital and invests at least 80% of its assets in publicly listed companies deriving at least half of their revenue from cardiovascular- or metabolic-disease treatments.

XHS The fund seeks to track the total return of the S&P Health Care Services Select Industry Index before fees and expenses, providing targeted exposure to health care services companies.

Why people hold it

• HRTS Written into the prospectus: at least 80% of assets in companies drawing half or more of their revenue from cardiovascular or metabolic disease treatment. Theme drift has a floor.
• About 50 stocks picked by a manager rather than copied from an index, so the portfolio can follow the science instead of waiting on a benchmark reconstitution.
• Nothing exotic under the hood: a plain 1940 Act fund holding listed stocks. No leverage sleeve, no derivatives wrapper to decode.

• XHS No drugmakers, no device makers. The index tracks four slices of care delivery: distributors, facilities, health care services and managed care.ssga.com
• Modified equal weighting spreads about 60 names across large, mid and small caps, so the portfolio is not a bet on two or three mega caps.ssga.com
• 0.35% a year sits below the 0.50% median for broad health care ETFs, on a fund that has been running since 2011.
• Ranks in the top quartile of the broad health care ETFs we grade.

Worth knowing

• HRTS 0.75% net of a waiver through June 28, 2027 (0.99% gross). That sits above the category median and well above broad peers like XLV at 0.08% or VHT at 0.09%.
• One of the thinner traders in its category and smaller by assets. Limit orders matter more here than with a mega sector fund.
• About 50 names in one disease niche: a single trial readout can move the whole portfolio. Concentration cuts both ways.

• XHS Cheap against the median, not against the giants: XLV, VHT and FHLC charge under a tenth of a percent for cap weighted whole sector exposure.
• Thinly traded next to the big sector funds, so spreads and limit orders matter more here.
• Leaving out pharma and biotech means it moves differently from a whole sector fund, and insurers and hospitals sit close to reimbursement policy.ssga.com

Full HRTS profile⁠

Full XHS profile⁠