The iShares U.S. Pharmaceuticals ETF (IHE) and the Invesco Biotechnology & Genome ETF (PBE) are two distinct options for investors in the healthcare sector. IHE offers a lower-cost entry with an expense ratio of 0.37% and focuses on established pharmaceutical companies, featuring major holdings like Johnson & Johnson and Eli Lilly. In contrast, PBE targets high-growth biotech firms with a higher expense ratio of 0.58% and a more concentrated portfolio of 31 stocks. Over the past year, IHE delivered a return of 54.9%, compared to PBE’s 45.2%, with IHE also showing less volatility and a lower maximum drawdown. Ultimately, the choice between the two depends on individual investor goals, time horizons, and risk tolerance; IHE may serve better as a stable core holding, while PBE presents an opportunity for growth-oriented investors who can withstand short-term fluctuations.
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Link to original article source: https://www.fool.com/coverage/etfs/2026/08/21/pharma-etf-or-biotech-etf-which-matches-your-investing-mindset/
