Comparing iShares U.S. Healthcare ETF and VanEck Biotech ETF for Investors

Last updated Jul 11, 2026

TL/DR –

The iShares U.S. Healthcare ETF (IYH) and VanEck Biotech ETF (BBH) are two healthcare-focused exchange-traded funds (ETFs) that offer different strategies and performances. IYH is centered on the U.S. healthcare sector, mostly tracking the performance of healthcare giants, while BBH focuses on companies involved in genetic research and diagnostics, offering more upside and volatility. Over the past decade, IYH delivered a compound annual growth rate (CAGR) of 9.7% and BBH delivered a CAGR of 7.1%.

Investors Weigh iShares U.S. Healthcare ETF and VanEck Biotech ETF

Investors contemplating between iShares U.S. Healthcare ETF (NYSEMKT:IYH) and VanEck Biotech ETF (NASDAQ:BBH) might evaluate them based on the broader, low-volatility healthcare coverage of IYH and the focused, growth-driven biotechnology basis of BBH.

Often, the decision between the broader healthcare industry and the biotechnology subsector depends on balancing high growth potential and portfolio stability. While BBH zeroes in on 25 biotech firms, IYH spreads across 100 companies, including pharmaceutical heavyweights and equipment manufacturers. This comparison probes into these disparate strategies’ effect on costs, yields, and risks.

Snapshots of the ETFs’ Costs and Sizes

Beta measures price volatility concerning the S&P 500, with beta computed from five-year monthly returns. The 1-yr return denotes total return over the trailing 12 months, while dividend yield is the trailing-12-month distribution yield.

BBH is more affordable, with an expense ratio of 0.35% against IYH’s 0.38%. However, IYH pays out more, providing a 1.20% dividend yield as opposed to BBH’s 0.50%.

Comparing the Performance and Risk of IYH and BBH

The iShares U.S. Healthcare ETF (IYH) provides extensive exposure across the healthcare sector, accounting for 100.00% of its portfolio. Its top positions include Eli Lilly (NYSE:LLY) at 15.96%, Johnson & Johnson (NYSE:JNJ) at 10.42%, and Abbvie Inc (NYSE:ABBV) at 7.30% among its 100 total holdings. It has a trailing 12-month yield of 1.20%.

Conversely, the VanEck Biotech ETF (BBH) focuses on 25 companies involved in genetic research and diagnostics. Its major holdings include Amgen Inc (NASDAQ:AMGN) at 14.84%, Gilead Sciences Inc (NASDAQ:GILD) at 13.21%, and Vertex Pharmaceuticals Inc (NASDAQ:VRTX) at 9.16%. BBH has a trailing 12-month yield of 0.50%.

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Comparing IYH and BBH

The iShares U.S. Healthcare ETF (IYH) and the VanEck Biotech ETF (BBH) are both healthcare-focused exchange-traded funds (ETFs). Here’s how they stack up against each other.

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