Choosing Healthcare ETFs: Why IHE Outperforms IBB for Many Investors

The iShares U.S. Pharmaceuticals ETF (IHE) and the iShares Biotechnology ETF (IBB) target different segments of the domestic healthcare market. According to Motley Fool, IHE focuses on established drugmakers with recurring revenue, while IBB provides broader exposure to higher-volatility biotechnology research and development companies, including many smaller research-driven firms. Nasdaq Markets notes that IHE offers a lower expense ratio and a significantly higher dividend yield than IBB.

Motley Fool reports that IHE is the more affordable option with a 0.37% expense ratio, compared to 0.44% for IBB. Additionally, IHE provides a 1.4% dividend yield, which is higher than the 0.2% yield offered by IBB.

Brief written by urgent.news from Nasdaq Markets, Motley Fool — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.