IYHETF

Vanguard Health Care ETF (VHT) and iShares U.S. Healthcare ETF (IYH) both provide U.S. healthcare sector exposure with identical 5-year returns, but VHT offers significantly better value with 411 holdings, a lower 0.09% expense ratio versus IYH's 0.37%, and a higher 1.4% dividend yield. While IYH takes a more concentrated approach with 100 stocks focused on large-cap healthcare companies, VHT is recommended for most investors seeking lower costs and broader diversification.

The article compares two healthcare ETFs: IBB (biotech-focused) and IYH (broad healthcare). IBB has delivered stronger 1-year returns (38% vs 17.4%) but exhibits higher volatility and deeper drawdowns. IYH offers lower costs, higher dividend yield, and broader diversification, making it better for most long-term investors, while IBB suits those with conviction in biotech momentum who can tolerate volatility.

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.