Concentrated Pharma Exposure or Broader Global Healthcare? PPH vs. IXJ
Key Points
The iShares Global Healthcare ETF provides broader exposure with 110 holdings across various sub-sectors compared to the 26 positions in the VanEck Pharmaceutical ETF
The VanEck Pharmaceutical ETF features a lower expense ratio of 0.36% and a higher trailing dividend yield of 2.00%
While the iShares Global Healthcare ETF has experienced lower historical drawdowns, the VanEck Pharmaceutical ETF has delivered higher total returns over the last five years
VanEck Pharmaceutical ETF (NASDAQ:PPH) provides concentrated exposure to global drugmakers, while iShares Global Healthcare ETF (NYSEMKT:IXJ) offers broader access to the wider healthcare sector, including equipment and services companies.
Investors seeking healthcare exposure must choose between targeted pharmaceutical plays and diversified global baskets. This comparison evaluates a focused pharmaceutical fund against a massive, global healthcare giant to determine which better aligns with specific portfolio objectives and risk tolerances.
Snapshot (cost & size)
| Metric | PPH | IXJ |
|---|---|---|
| Issuer | VanEck | iShares |
| Share price | $107.52 (as of 2026-07-15) | $97.93 (as of 2026-07-15) |
| Expense ratio | 0.36% | 0.40% |
| 1-yr return (as of July 15, 2026) | 26.60% | 17.30% |
| Dividend yield | 1.97% | 1.47% |
| Beta | 0.41 | 0.56 |
| AUM | $879.46 million | $3.84 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The VanEck Pharmaceutical ETF is slightly more affordable than its iShares peer, carrying a 0.36% expense ratio compared to 0.40% for the iShares Global Healthcare ETF. Additionally, the VanEck fund offers a higher payout, with a 0.53 percentage point yield advantage.
Performance & risk comparison
| Metric | PPH | IXJ |
|---|---|---|
| Max drawdown (5 yr) | (20.30%) | (18.10%) |
| Growth of $1,000 over 5 years (total return) | $1,630 | $1,246 |
What's inside
The iShares Global Healthcare ETF provides exposure to global healthcare equities, with 100% of its portfolio concentrated in the healthcare sector. It maintains 110 holdings, offering broader diversification than more specialized pharmaceutical funds. Its largest positions include Eli Lilly (NYSE:LLY) at 10.60%, Johnson & Johnson (NYSE:JNJ) at 7.10%, and Abbvie (NYSE:ABBV) at 5.03%. The fund was launched in 2001. iShares Global Healthcare ETF has paid $1.44 per share over the trailing 12 months, which on its recent ~$97.93 share price works out to a 1.50% yield.
The VanEck Pharmaceutical ETF tracks the MVIS US Listed Pharmaceutical 25 Index, focusing specifically on drug development, marketing. It is a more concentrated vehicle with only 26 holdings. Top holdings include Eli Lilly & Co. (NYSE:LLY) at 19.93%, Novartis (NYSE:NVS) at 10.45%, and Merck & Co. (NYSE:MRK) at 9.49%. The fund was launched in 2011.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
PPH and IXJ both sit in the healthcare ETF category, but the portfolios are built around different levels of concentration. The VanEck Pharmaceutical ETF narrows the bet to a small group of major drugmakers, while the iShares Global Healthcare ETF spreads exposure across more of the global healthcare industry.
PPH gives investors more direct exposure to pharmaceutical companies, where returns can depend on drug pipelines, patent cycles, pricing pressure, regulation, and demand for major therapies. That focus can be appealing when large drugmakers are leading, but it also leaves the fund more tied to one part of healthcare. IXJ still owns major pharmaceutical stocks, but it also includes biotechnology, medical equipment, healthcare services, and other global healthcare companies.
For investors, the key question is whether they want healthcare exposure driven mainly by drugmakers or spread across more parts of the sector. PPH may appeal to investors who want a targeted pharmaceutical fund and can accept the added concentration. IXJ may be better suited for investors who want a broader global healthcare allocation that is less dependent on pharma alone.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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