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Is the iShares Pharmaceuticals ETF or iShares Healthcare ETF the Better Fund for 2026?

The Motley Fool·
Is the iShares Pharmaceuticals ETF or iShares Healthcare ETF the Better Fund for 2026?

The article compares two healthcare-focused ETFs from iShares: IHE (Pharmaceuticals ETF) with 55 holdings and IYH (Healthcare ETF) with 100 holdings. While IHE delivered stronger 1-year returns of 50% versus IYH's 27.4%, the article recommends IYH as the better choice due to superior 3- and 5-year performance, greater diversification, and larger asset base of $3.9B. Both funds have identical 0.37% expense ratios.

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