Invesco Pharmaceuticals vs iShares Healthcare: Which Healthcare ETF Brings Better Profits
Invesco's concentrated 30-stock pharma fund delivered 43.1% returns last year, but iShares' broader 100-holding portfolio costs less and offers wider sector exposure.
Overview
The Invesco Pharmaceuticals ETF (NYSEMKT:PJP) concentrates specifically on a narrow group of 27 pharmaceutical companies, while the iShares U.S. Healthcare ETF (NYSEMKT:IYH) provides broader sector exposure with 100 holdings and a lower expense ratio.
Healthcare is often viewed as a defensive sector, but it encompasses everything from mature dividend-paying giants to speculative biotechnology firms. Choosing between a specialized fund like the Invesco Pharmaceuticals ETF and a broad-market equivalent like the iShares U.S. Healthcare ETF involves weighing the benefits of concentration against the stability of diversification.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the end of trading on Aug. 27, 2026.
Source
Originally published at www.fool.com.