Invesco Pharmaceuticals vs iShares Healthcare: Which Healthcare ETF Brings Better Profits

Invesco Pharmaceuticals ETF (PJP) and iShares U.S. Healthcare ETF (IYH) are two distinct investment vehicles within the healthcare sector. PJP focuses on a concentrated selection of 27 pharmaceutical companies, while IYH offers broader exposure to the entire healthcare sector, encompassing 100 holdings.

Healthcare is frequently considered a defensive sector, characterized by companies that tend to maintain steady earnings even during economic downturns. However, the sector includes a variety of companies, ranging from established, dividend-paying firms to innovative biotechnology startups. Investors must decide whether the focused approach of PJP or the diversified strategy of IYH better aligns with their investment goals.

When comparing the two ETFs, it is essential to consider various metrics, including beta, 1-year return, and dividend yield. Beta is a measure of the ETF's price volatility compared to the S&P 500. It is derived from the ETF's monthly returns over the available fund history, up to five years. The 1-year return represents the total return over the trailing 12 months, providing insight into the ETF's performance over a recent period.

Lastly, the dividend yield indicates the annual distribution yield based on the trailing 12 months as of the end of trading on August 27, 2026.

By examining these key factors, investors can make an informed decision about which healthcare ETF—Invesco Pharmaceuticals ETF (PJP) or iShares U.S. Healthcare ETF (IYH)—best suits their investment objectives.