PPH vs. IYH: Weighing Concentrated Pharma Income Against Broader Healthcare Stability

Overview

• PPH is a concentrated pharmaceutical ETF with 26 holdings and a larger stake in a few companies while IYH is a broad U.S. healthcare ETF holding roughly 100 positions across drugs, devices, services, and biotech.
• PPH charges a 0.36% expense ratio and shows a trailing dividend yield of about 1.97% while IYH charges 0.38% and yields about 1.17%, creating a clear income tradeoff for investors.
• Top-weight differences amplify risk and reward because Eli Lilly represents roughly 19% of PPH and about 15% of IYH, and PPH’s top three positions account for nearly 40% of the fund.
• IYH has produced a steadier ride with a lower five-year maximum drawdown of about 17.9% while PPH delivered a stronger five-year total return at the cost of higher volatility.
• Investors should match choice to goals by accepting single-company catalyst risk and the need to track clinical and regulatory calendars if they want PPH’s income and upside or by choosing IYH for broader risk dilution and steadier performance.