The iShares U.S. Healthcare ETF (IYH) provides a cost-effective, diversified core for portfolios, while the Invesco Biotechnology & Genome ETF (PBE) serves as a specialized, high-conviction play on biotech innovation.
IYH is favored as the stronger long-term healthcare ETF due to lower expense ratio, broader diversification, and stability.
Eli Lilly is the largest holding of IYH and is recommended by The Motley Fool.
PBE is suitable for investors targeting biotechnology innovation but carries higher fees and concentration risk.
Johnson & Johnson is a major holding in IYH and is recommended by The Motley Fool.
AbbVie is a top holding of IYH and is recommended by The Motley Fool.
Amgen is a top holding of PBE and is recommended by The Motley Fool.
Regeneron Pharmaceuticals is a top holding of PBE and is recommended by The Motley Fool.
CareDx is the top holding of PBE, representing the fund's focus on genomics and biotech.
Investors evaluating healthcare exposure face a choice between the broad, low-cost diversification of the iShares U.S. Healthcare ETF (IYH) and the concentrated, high-growth potential of the Invesco Biotechnology & Genome ETF (PBE). While PBE has delivered superior one-year returns, IYH offers a more stable foundation with lower fees and broader sector coverage.
The iShares U.S. Healthcare ETF (IYH) is generally better for conservative investors due to its broader diversification across the healthcare sector, lower expense ratio, and lower historical volatility.
IYH tracks a broad index of 100 healthcare companies across various subsectors, while PBE is a concentrated fund holding 31 companies specifically focused on biotechnology and genomics.