iShares U.S. Pharmaceuticals ETF and Global Healthcare ETF show near-identical fees but vary in sector focus and international exposure.
The iShares U.S. Pharmaceuticals ETF (IHE) and iShares Global Healthcare ETF (IXJ) charge nearly the same management fees, with IXJ’s 0.40% expense ratio just 0.02 percentage points higher. IHE offers a 1.70% distribution yield, slightly above IXJ’s $1.36 per share trailing-12-month dividend.
IXJ provides broader exposure with 114 holdings across pharmaceuticals, biotechnology, and healthcare equipment globally, including top positions in Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV). IHE, launched in 2001, focuses narrowly on 55 U.S. pharmaceutical firms. IXJ manages $3.6 billion in assets, reflecting its wider market reach.
The funds’ differing scopes influence risk and performance, with IXJ’s diversification potentially mitigating sector-specific volatility compared to IHE’s concentrated approach.