IXJETF

iShares U.S. Healthcare ETF (IYH) outperformed its global counterpart (IXJ) with 28.8% one-year returns versus 22.5%, while IXJ offers higher dividend yield at 1.4%. Both funds have nearly identical expense ratios (0.37-0.38%) and low volatility, with choice depending on whether investors prefer domestic or international healthcare exposure.

Healthcare sector is experiencing a significant rebound, with ETFs hovering near 52-week highs driven by double-digit earnings growth expectations, positive clinical trial results, attractive valuations, and expanding GLP-1 adoption. Major pharmaceutical companies reported promising drug-trial outcomes in oncology, obesity, and rare diseases, while M&A activity surged to nearly $284 billion. The sector is benefiting from a rotation out of overcrowded AI/tech trades into defensive growth.

VHT, a passively managed healthcare ETF with $20.15 billion in assets, offers broad exposure to the healthcare sector with a low expense ratio of 0.09% and a Zacks ETF Rank of 1 (Strong Buy). The fund has delivered strong performance with returns of 16.92% year-to-date and 24.95% over the past year, making it an attractive option for long-term healthcare investors seeking diversified exposure.