ETF Evaluator:
iShares US Pharmaceuticals ETF (IHE)
Follow This ETF
(as of Jul 31)
Best Performing in Health Over the Last Year
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ETF Details
iShares US Pharmaceuticals ETF Overview
iShares US Pharmaceuticals ETF (IHE) is a passively managed Sector Equity Health exchange-traded fund (ETF). iShares launched the ETF in 2006.
The investment seeks to track the investment results of the Dow Jones U.S. Select Pharmaceuticals Index.
The underlying index includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines. The fund generally will invest at least 80% of its assets in the component securities of its underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents. The fund is non-diversified.
About iShares US Pharmaceuticals ETF (IHE)
There are 4 members of the management team with an average tenure of 4.40 years: Jennifer Hsui (2012), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P US TMI TR USD index with a weighting of 100% and DJ US Select Pharms TR USD index with a weighting of 100%. iShares US Pharmaceuticals ETF has 60 securities in its portfolio. The top 10 holdings constitute 76.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
iShares US Pharmaceuticals ETF is part of the Equity global asset class and is within the Sector Equity ETF group. iShares US Pharmaceuticals ETF has 0.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.7% There is 0.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares US Pharmaceuticals ETF has 0.1% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is below the $1 billion average for the Health category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
IHE Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares US Pharmaceuticals ETF expense ratio is below average compared to funds in the Health category. iShares US Pharmaceuticals ETF has an expense ratio of 0.38%, which is 27% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares US Pharmaceuticals ETF has a portfolio turnover rate of 29%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 40% for the Health category.
Recently, in the month of June 2026, iShares US Pharmaceuticals ETF returned 8.2%, which earned it a grade of C, as the Health category had an average return of 8.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
iShares US Pharmaceuticals ETF has a trailing yield of 1.48%, which is above the 1.12% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
iShares US Pharmaceuticals ETF Grades
Year to date, the ETF has returned 17.5%, 7.4 percentage points better than the category, which translates into a grade of B. The fund has returned 53.7% over the past year (grade of B), 20.4% over the past three years (grade of A) and 11.8% per year over the past five years (grade of A) and 9.1% per year over the past 10 years (grade of C).
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IHE Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| IHE Return (NAV) | 8.2% | 14.6% | 53.7% | 20.4% | 11.8% | 9.1% |
| IHE Return (Price) | 8.3% | 14.6% | 53.8% | 20.4% | 11.8% | 9.1% |
| NAV +/- Price Return | -0.057% | 0.033% | -0.015% | -0.010% | 0.011% | -0.018% |
| Health Avg | 8.7% | 13.9% | 37.6% | 10.6% | 1.5% | 9.5% |
| IHE Grade (NAV) | C | C | B | A | A | C |
| +/- Category (NAV) | -0.5% | 0.7% | 16.2% | 9.8% | 10.3% | -0.4% |
| IHE Tax-Cost Ratio | na | na | 0.5% | 0.4% | 0.4% | 0.4% |
IHE Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| IHE Return (NAV) | 17.5% | 31.7% | 8.1% | 1.0% | -4.8% | 12.8% | 13.8% | 15.5% | -7.7% | 10.7% | -11.7% |
| IHE Return (Price) | 17.5% | 31.7% | 8.1% | 1.1% | -4.9% | 13.1% | 13.7% | 15.5% | -7.8% | 10.7% | -11.7% |
| NAV +/- Price Ret | -0.003% | -0.002% | 0.006% | 0.079% | 0.019% | 0.017% | -0.011% | -0.1% | 1.1% | -0.0% | 0.1% |
| Health Avg | 10.1% | 21.8% | 0.1% | 2.2% | -16.3% | 4.3% | 30.5% | 25.4% | -1.5% | 26.5% | -10.2% |
| IHE Grade (NAV) | B | A | A | D | B | B | D | F | D | F | C |
| +/- Category | 7.4% | 10.0% | 8.0% | -1.2% | 11.5% | 8.5% | -16.7% | -9.9% | -6.2% | -15.8% | -1.5% |
| Risk Measures | |
| Beta: | 0.51 |
| R-Squared: | 16% |
| Standard Deviation: | 15.8% |
| Category Risk Index: | 0.79 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 1.30 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 1.5% |
| Total Assets: | $ 1,138 Mil |
| Share Class Assets: | $ 1,138 Mil |
| Turnover: | 29.0% |
| Expense Ratio: | 0.38% |
| Index Fund: | Yes |
| Index Tracked: | S&P US TMI TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 13.8 years | |||
| Average Tenure: 4.4 years | |||
| Managers (Year): Hsui Jennifer (2012), Sietsema Peter (2025), Waldron Matt (2025), White Steven (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 60 |
| % in Top 10 Holdings: | 76.1% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.2% |
Portfolio Allocation |
|
| Domestic Stock: | 99.7% |
| Foreign Stock: | 0.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.1% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | iShares |
| Phone Number: | 800-474-2737 |
| Website: | au.ishares.com |
| Inception Date: | May 1, 2006 |
Expenses and Fees
| Expense Ratio (%): | 0.38% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.52% |
