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PINK vs. IXJ: Which Health Care ETF Is the Better Buy for Investors?

The Motley FoolJul 22, 2026 11:05 AM
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Key Points

  • The iShares Global Healthcare ETF (IXJ) charges a lower expense ratio and pays a higher dividend yield than the Simplify Health Care ETF (PINK).

  • PINK has delivered stronger one-year and three-year returns than IXJ.

  • PINK donates all of its net profits to breast cancer research, while IXJ offers broad, indexed global health care exposure.

Investors comparing these two funds are really choosing between two different philosophies. The iShares Global Healthcare ETF (NYSEMKT:IXJ) is a low-cost, diversified way to own the global healthcare sector. The Simplify Health Care ETF (NYSEMKT:PINK) is an actively managed, more concentrated fund that includes innovative biotech and medtech names -- with a mission-driven twist that sets it apart from most other ETFs.

Snapshot (cost & size)

MetricPINKIXJ
IssuerSimplifyiShares
Expense ratio0.51%0.40%
1-year return (as of June 21, 2026)31.93%19.57%
Dividend yield0.64%1.47%
Beta0.780.52
AUM$358.6 million$3.8 billion

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-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

IXJ is the more affordable option, with a 0.40% expense ratio compared to PINK's 0.51%. IXJ also pays out more for income-focused investors -- with a 1.47% dividend yield versus 0.64% for PINK.

Performance & risk comparison

MetricPINKIXJ
Max drawdown (3 yr)(18.77%)(18.14%)
Growth of $1,000 over 3 years (total return)$1,449$1,187

What's inside

Launched in 2001, the iShares Global Healthcare ETF (NYSEMKT:IXJ) spreads its assets across 110 holdings covering the global healthcare sector. Its largest positions include Eli Lilly (NYSE:LLY) at 10.9%, Johnson & Johnson (NYSE:JNJ) at 7.0%, and Abbvie (NYSE:ABBV) at 5.1%.

The Simplify Health Care ETF (NYSEMKT:PINK) takes a narrower, more concentrated approach, holding 58 positions. Its largest positions include Purecycle Technologies (NASDAQ:PCT) at 7.1%, United Therapeutics Corp (NASDAQ:UTHR) at 7.1%, and Novo Nordisk (NYSE:NVO) at 7.0%. PINK was launched in 2021.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

Choosing between these two funds isn’t difficult. It really comes down to what an investor wants from their healthcare allocation.

IXJ is the more conventional choice -- a diversified index fund that's cheaper to own and pays a meaningfully higher dividend, making it a reasonable core holding for investors who want steady, low-maintenance exposure to global healthcare giants like Eli Lilly, Johnson & Johnson, and AbbVie.

PINK’s more concentrated portfolio comes with a mission-oriented mandate: Every dollar of net profit the fund generates is donated to breast cancer research through Susan G. Komen, one of the largest breast cancer non-profit organizations in the country. That's unique for an ETF -- most funds simply pocket their management fees -- so PINK gives investors a way to combine sector exposure with tangible social impact, without costing much more than a typical actively managed fund.

PINK has been the stronger performer lately, posting a roughly 32% one-year return -- well ahead of IXJ's steadier, more index-like results. That gap reflects the two funds' different approaches: PINK’s concentrated, actively managed portfolio includes more innovation-driven biotech and medtech names. These types of companies can outperform sharply at times, but that also means PINK carries more single-stock and strategy risk than a broadly diversified index fund. IXJ, by design, spreads risk across more than 100 global healthcare names, which tends to smooth out returns -- for better or worse -- compared with PINK's higher-octane approach.

Investors prioritizing income and diversification who want to keep costs as low as possible are likely better served by IXJ. Those comfortable with more concentration risk in exchange for the potential of stronger returns -- and who like the idea of their fund fees supporting cancer research -- may find PINK's offering more compelling. As always, recent outperformance is not a guarantee of what comes next, so investors should weigh their own risk tolerance as heavily as recent returns.

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Andy Gould has positions in AbbVie, Novo Nordisk, and United Therapeutics. The Motley Fool has positions in and recommends AbbVie, Eli Lilly, Novo Nordisk, and United Therapeutics. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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