IHE vs. PJP: Which Pharmaceutical ETF Is the Better Buy for Investors?
Compare the portfolio concentration, risk profiles, and long-term growth of these two pharma ETFs.
Overview
The iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers lower fees and a higher dividend yield, while the Invesco Pharmaceuticals ETF (NYSEMKT:PJP) spreads its holdings more evenly across the sector's biggest players.
Investors seeking pharmaceutical exposure in an ETF often have to choose between broad industry coverage and a more concentrated strategy. This comparison examines how IHE and PJP navigate the regulatory and research-heavy world of American drugmakers -- weighing fees, portfolio concentration, and long-term performance in a sector that can swing hard on a single clinical trial or FDA decision.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.