IYH offers lower fees, broader sector exposure, and a higher dividend yield than PJP, targeting investors seeking diversified healthcare exposure.
The iShares U.S. Healthcare ETF (IYH) undercuts the Invesco Pharmaceuticals ETF (PJP) with a 0.38% expense ratio versus PJP’s 0.57%. IYH also delivers a modestly higher dividend yield, appealing to cost-conscious investors.
IYH, launched in 2000, holds 100 securities across pharmaceuticals, medical equipment, and healthcare services, with top holdings including Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV). PJP, launched in 2005, is more concentrated, with 29 stocks focused on drug development and similar top holdings at lower weightings.
The funds’ differing strategies create distinct risk-reward profiles, with IYH offering broader diversification and PJP providing targeted exposure to pharmaceuticals.