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AbbVie Inc. (ABBV)
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Eli Lilly and Company (LLY)
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iShares Global Healthcare Index ETF (CAD-Hedged) (XHC)
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Vanguard Health Care ETF (VHT)
Q: I currently own XHC.
I see that VHT has a lot lower MER. Does it make sense to make a switch?
I assume VHT is more North America while XHC is global?
Also have about 4% in ABBV in an Registered Account with a 52% return. (thank your;)
Would it make sense to cut this down to 2% and add LLY?
LLY has had quite a run the last couple of years and that can be scary. Does LLY have a good runway?
Thanks.
I see that VHT has a lot lower MER. Does it make sense to make a switch?
I assume VHT is more North America while XHC is global?
Also have about 4% in ABBV in an Registered Account with a 52% return. (thank your;)
Would it make sense to cut this down to 2% and add LLY?
LLY has had quite a run the last couple of years and that can be scary. Does LLY have a good runway?
Thanks.
5i Research Answer:
There is a big fee difference (VHT 0.10%, XHC 0.65%). VHT is currently 97% invested in the USA. XHC is 69% USA currently. We would be OK with a switch provided investors are OK with the geographic allocation. From a diversification standpoint we would be also fine reducing ABBV and adding some LLY. We think LLY's outlook remains solid. We would note though that VHT already has an 8% position in LLY and a 4.7% position in ABBV right now so we would consider that in one's overall decision and allocation.