MEDI vs PSR

MEDIDHarbor Health Care ETF (MEDI)

PSRAInvesco Active U.S. Real Estate ETF

In short

MEDI Roughly 40 health care stocks, hand-picked across any size, from big pharma to small biotech. It's a concentrated stock-picker's book benchmarked to a growth health care index, not a hold-everything sector basket.

PSR Active REIT stock-picking without the active price tag: since 2008, PSR has run a tight book of about 30 US property names for 0.35% a year, roughly half the median fee among active US equity ETFs.

Stated mandate

MEDI Seeks long-term growth of capital by primarily investing in common and preferred equity securities of companies of any market capitalization. Normally, at least 80% of net assets plus investment borrowings are invested in companies principally engaged in health care-related products and services.

PSR The Fund seeks high total return through capital appreciation and current income, investing principally in equity real estate investment trusts.

Why people hold it

• MEDI About 40 names, not hundreds. Each pick has room to matter, which is the whole point of hiring an active manager instead of buying the entire sector.
• The mandate is explicit: at least 80% of assets in health care companies, any market cap, common or preferred shares. Big pharma and small biotech are both fair game.
• The yardstick is named up front, the Russell 3000 Growth Health Care Index, so the growth lean is disclosed rather than discovered later.

• PSR 0.35% a year against a 0.65% median for active US equity ETFs. Active management without the usual active-management markup.
• Running since 2008, across multiple rate regimes and property cycles, and it sits in the upper half of its active US equity peer group.
• Concentrated by design: about 30 equity REITs, so each holding carries real weight instead of being diluted across the entire property market.invesco.com
• The mandate targets capital appreciation plus current income from equity REITs, and the fund distributes quarterly.invesco.com

Worth knowing

• MEDI The 0.80% expense ratio sits above the median for actively managed US equity ETFs, so the stock picking carries a higher bar to clear.
• This is a small fund that doesn't trade heavily, which can mean wider bid-ask spreads than the giant sector index products.
• Payouts land once or twice a year, and a 40-stock growth portfolio reacts to single-name drug and trial news far more than a broad sector basket.

• PSR Thinly traded. Spreads can widen and larger orders can move the price more than they would in a heavily traded index fund.
• One sector, one economy: US property. When rates jolt REITs, the portfolio has no other sector to lean on.
• Assets stay modest next to the giant index REIT funds, and smaller ETFs generally face a higher bar to stay open over the long haul.

Full MEDI profile⁠

Full PSR profile⁠