Is the iShares Pharmaceuticals ETF or iShares Healthcare ETF the Better Fund for 2026?
IHE's concentrated pharma focus delivered 50% gains versus IYH's 27.4%, though the broader healthcare fund offers more diversification and $3.9B in assets.
Overview
The iShares U.S. Healthcare ETF (NYSEMKT:IYH) provides a broad basket covering medical providers, devices, and biotechnology, while iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers concentrated exposure strictly to the drug manufacturing industry.
Investors seeking healthcare exposure often choose between niche subsectors, such as drug manufacturing, and broader industry baskets. Both iShares U.S. Pharmaceuticals ETF and iShares U.S. Healthcare ETF are managed by iShares, a division of BlackRock Inc (NYSE:BLK), but they differ significantly in their scope. While the former focuses strictly on pharmaceutical giants, the latter represents a more diverse range of medical services and technologies.
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 the trading day on Aug. 27, 2026.
Source
Originally published at www.fool.com.