MEDX vs PSR

MEDXDHorizon Kinetics Medical ETF

PSRAInvesco Active U.S. Real Estate ETF

In short

MEDX Most healthcare funds chase drugmakers' profits. MEDX aims at the bill itself: pre-expense returns that generally track the U.S. healthcare cost inflation rate, held in a concentrated, actively run book.

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

MEDX The Fund seeks to provide long-term growth of capital.

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

• MEDX Unusual mandate: the fund seeks pre-expense returns that generally track the U.S. healthcare cost inflation rate, not the price of the healthcare sector.
• Concentrated by design, roughly 30 positions. You can read the whole portfolio in a sitting instead of owning a sector index tail.
• Actively managed by Horizon Kinetics since its 2023 launch, so the book is picked against the inflation goal rather than assembled by market cap.

• 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

• MEDX At 0.85% a year, it costs more than the median active US equity fund (0.65%), and multiples of broad core rivals like DFAU (0.12%) and FELC (0.18%).
• Small asset base and light trading volume. Spreads can widen, so limit orders do real work here.
• Distributions arrive once or twice a year, and against hundreds of active US equity peers it sits in the bottom quartile on our overall review.

• 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 MEDX profile⁠

Full PSR profile⁠