VanEck Pharmaceutical ETF delivers stronger returns than iShares U.S. Healthcare ETF but with greater drawdown risk.
The VanEck Pharmaceutical ETF (PPH) has posted a higher five-year return than the iShares U.S. Healthcare ETF (IYH), despite its greater volatility. PPH, focused on pharmaceutical giants, achieved the outperformance with a maximum drawdown of 22.3% over the past five years, compared to IYH’s 17.9%.
IYH, launched in 2000, offers broader exposure to healthcare, including medical devices, biotech, and service providers, with 100 holdings. Its top positions include Eli Lilly (LLY) at 15.1%, Johnson & Johnson (JNJ) at 10.2%, and AbbVie (ABBV) at 7.3%. PPH, meanwhile, concentrates solely on drugmakers.
PPH also boasts a lower expense ratio of 0.36% versus IYH’s 0.38% and a higher dividend yield of 1.97% compared to IYH’s 1.17% over the trailing 12 months.