Gilead Sciences, Inc. (GILD), Vanguard Health Care ETF (VHT): How to Invest in Health Care

3. Small piece of biotech
First Trust NYSE Arca Biotchnlgy Indx Fd (NYSEMKT:FBT) tracks the NYSE Arca Biotechnology Index and has 20 holdings. Top holdings include Incyte, Intermune, Celgene and BioMarin. The ETF is up 38.69% year-to-date.

Intermune only has three products total and one that’s selling abroad, but has yet to receive Food and Drug Administration approval. Celgene and BioMarin stand stronger with multiple approved products and populated pipelines. Celgene has a blockbuster drug in its portfolio, and BioMarin’s just around the corner from a potential FDA approval for its much-anticipated drug Vimizim.

This First Trust NYSE Arca Biotchnlgy Indx Fd (NYSEMKT:FBT) has an expense ratio of 0.61% and an average volume of around 200,000.

Foolish final thoughts
Health care ETFs will carry far more risk than an ETF tracking a broader index. The ETFs do provide an option for investors who want health care in the portfolio, but don’t have the time, energy, or funds to invest in individual industry stocks. Vanguard Health Care ETF (NYSEARCA:VHT) offers the lowest risk with the broadest holdings. But First Trust NYSE Arca Biotchnlgy Indx Fd (NYSEMKT:FBT) helps make a more daring play without losing your shirt. Ultimately, the choice comes down to what sort of player best fits into your existing portfolio.

The article 3 Lower-Risk Ways to Invest in Health Care originally appeared on Fool.com and is written by Brandy Betz.

Brandy Betz has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences (NASDAQ:GILD).

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