Which iShares Healthcare ETF Is the Better Buy: Biotech-Focused IBB or Broad IYH?
The iShares Biotechnology ETF (NASDAQ:IBB) provides targeted exposure to U.S. biotech companies, while the iShares U.S. Healthcare ETF (NYSEMKT:IYH) offers broader diversification across the entire healthcare sector at a lower cost.
Both funds offer specialized entry points into the American healthcare system. While IYH includes pharmaceutical giants and medical equipment providers, IBB focuses on the high-growth, high-volatility biotechnology niche. This comparison helps investors determine whether concentrated sector risk or broad industry exposure better suits their portfolio needs.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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