iShares Health Innovation Active ETF

iShares Health Innovation Active ETF (BMED) is an actively managed BlackRock fund that hand-picks health sciences stocks, aiming for innovative and emerging companies. It charges 0.55% a year (its expense ratio), above the 0.36% average of similar funds, and had just $11.2 million in net assets as of July 31, 2026. Its three-year return topped those funds as of October 27, 2026, but its five-year return was about 4% a year.

• Over the year to Oct 27, 2026, BMED returned +24.8%, 4th of 9 among similar funds.
• Its 5-year annualized return was +4.0%.
• Its worst full calendar year was 2022 (-19.7%); its best was 2025 (+21.8%).
• The deepest fall in its price history was 36.4% (Feb 9, 2021 to Sep 26, 2022), recovered by Aug 10, 2026.

As of Jul 31, 2026, the fund held 56 securities; the ten largest made up 41.72% of assets, and 5.48% sat in cash and money-market holdings.

By sector

• Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.47%, +6.93%, +1.11%.

BMED is actively managed, so it does not track an index. BlackRock's managers pick the stocks, aiming to maximize total return (price gains plus dividends). Normally at least 80% of net assets go into health sciences companies: drugmakers, biotech firms, medical equipment and diagnostics makers, clinical labs, hospital operators and their suppliers. It may also own companies working on animal and plant health, such as crop yields or pet health.

The managers look for innovative and emerging companies of any size worldwide, including emerging markets (developing economies), with a stated focus on mid- and small-sized firms. The prospectus sets no weighting formula or rebalancing schedule; position sizes are the managers' call. As of July 31, 2026, the fund had 56 holdings; the largest were Merck (5.9%), Gilead Sciences (4.9%) and Johnson & Johnson (4.5%), and the 10 largest made up 41.7% of assets. Turnover was 109%, meaning it traded roughly the value of its whole portfolio in a year, which adds trading costs.

Up to 20% can go elsewhere, including stocks outside health care and lower-rated "junk" bonds. It may also use derivatives (contracts tied to other assets' prices), such as futures, swaps and options, to manage risk or add income. It is not a leveraged fund, and its July 31, 2026 holdings report showed no derivatives.

• BMED charges 0.55% a year, versus an average of 0.36% for the similar funds below (7th of 9, cheapest first).
• Of that, 0.77% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.22% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $934 over 10 years (assuming a 5% annual return).

It is a concentrated, actively managed health sciences fund whose deepest drop was 36.4%, so it fits better as a small side position than as a foundation.

BMED could add a hand-picked slice of health care stocks, but it has swung hard. Launched in September 2020, it has no record from the 2008 and early-2020 crashes. In the 2022 market slump it fell 28.6% and took 37.5 months to recover. Its deepest drop, 36.4% from February 2021 to September 2022, took 46.5 months to recover. Its worst calendar year was 2022, down 19.5% per the prospectus. Withdrawing money then would have meant cashing out at a loss.

Income is minimal: the 12-month yield was 0.22% as of October 27, 2026, paid once a year. The 0.55% expense ratio is above the 0.36% peer average; in the SEC's standard example, $10,000 earning 5% a year would cost $56 after one year and $934 after 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.