PTH vs XHS

PTHCInvesco Dorsey Wright Healthcare Momentum ETF

XHSAState Street SPDR S&P Health Care Services ETF

In short

PTH Health care ranked by price strength instead of market cap. PTH's index has been running since 2006, holds about 50 relative-strength names, and reshuffles them every quarter, so the lineup can look nothing like the sector's megacap giants.

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

PTH The Fund seeks to track the performance of its underlying index before fees and expenses. The index selects healthcare companies exhibiting relative strength or momentum.

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

• PTH The momentum screen draws from a broad US healthcare universe, so the names that qualify can be anything from megacaps to small caps. A genuinely different portfolio than cap-weighted sector funds like XLV and VHT.invesco.comnasdaq.com
• Live since October 2006, through multiple biotech booms and busts, well before momentum became a standard ETF label.
• Discipline is built into the calendar: the index is reconstituted and rebalanced quarterly, and the fund normally keeps at least 90% of total assets in index securities.nasdaq.comnasdaq.com 2

• 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

• PTH 0.60% net of a waiver through August 31, 2028 (0.74% gross), above the category median and far above cap-weighted peers like XLV at 0.08% and VHT at 0.09%.
• With about 50 holdings and momentum setting the lineup, single-name moves land harder here than in a several-hundred-stock cap-weighted health care fund.
• Momentum, by design, buys what has already run and trims what has lagged, so sharp reversals can catch the index between quarterly rebalances.nasdaq.comnasdaq.com 2

• 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 PTH profile⁠

Full XHS profile⁠