Choosing Healthcare ETFs: Why IHE Outperforms IBB for Many Investors

The iShares U.S. Pharmaceuticals ETF (IHE) offers lower costs, higher dividend yield (1.4% vs 0.2%), and better 5-year returns (79% vs 38%) compared to the iShares Biotechnology ETF (IBB). IHE focuses on 53 established drugmakers with lower volatility, while IBB provides broader exposure to 243 biotech firms with higher risk. IHE may be preferable for income-focused investors, though IBB suits those seeking broader biotech sector exposure.