At a glance
IHE charges 0.37% a year, below the 0.41% average of the 8 funds most like it (the 5th cheapest of 9). It has $1.14B in assets, the 4th largest of that group; it paid 1.38% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +39.8% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +25.0% a year. At its worst it fell 26.8% in the 2020 crash (S&P 500: 33.7%) and 16.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 16 months after the lows. Its ten largest positions make up 76.1% of the fund, out of 56 in all.
The short version
The iShares U.S. Pharmaceuticals ETF (IHE) is a BlackRock index fund tracking the Dow Jones U.S. Select Pharmaceuticals Index of U.S. drug companies. It is top-heavy: Johnson & Johnson and Eli Lilly were each about 22% of assets as of June 30, 2026, and the top 10 holdings made up 76%. Its 0.37% yearly fee is just below the 0.41% average for similar funds but well above broad health care fund XLV's 0.08%.
Price history
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IHE +39.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IHE official prospectus, to Dec 31, 2025 | — | +31.74% | — | +9.09% | +6.24% | — |
| S And P Total Market Index index, same period | — | +17.05% | — | +13.07% | +14.22% | — |
| Dow Jones U S Select Pharmaceuticals Index index, same period | — | +32.00% | — | +9.35% | +6.52% | — |
| IHE price data to Oct 27, 2026 | +22.9% | +39.8% | +25.0% | +12.8% | +9.9% | +10.5% |
- Over the year to Oct 27, 2026, IHE returned +39.8%, 2nd of 9 among similar funds.
- Its 5-year annualized return was +12.8% and its 10-year +9.9%.
- In the 2020 COVID crash it fell 26.8% and regained its old high 3.7 months after the low.
- Its worst full calendar year was 2008 (-15.8%); its best was 2013 (+39.5%).
- The deepest fall in its price history was 39.1% (May 22, 2007 to Mar 5, 2009), recovered by Dec 28, 2009.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +22.9% | — |
| 2025 | +31.7% | +31.74% |
| 2024 | +8.1% | +8.08% |
| 2023 | +1.1% | +0.99% |
| 2022 | -4.9% | -4.78% |
| 2021 | +13.1% | +12.83% |
| 2020 | +13.7% | +13.82% |
| 2019 | +15.5% | +15.49% |
| 2018 | -7.8% | -7.67% |
| 2017 | +10.7% | +10.66% |
| 2016 | -11.7% | -11.72% |
| 2015 | +8.8% | — |
| 2014 | +29.2% | — |
| 2013 | +39.5% | — |
| 2012 | +11.9% | — |
| 2011 | +19.9% | — |
| 2010 | +11.6% | — |
| 2009 | +28.7% | — |
| 2008 | -15.8% | — |
| 2007 | +1.7% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 34.4% over that stretch · deepest drop along the way 36.3%, back to its old high 8.5 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 26.8% over that stretch · deepest drop along the way 26.8%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.4% over that stretch · deepest drop along the way 16%, back to its old high 15.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8400 | |
| 2025 | $1.5000 | +31.6% |
| 2024 | $1.1400 | +33.6% |
| 2023 | $0.8533 | -31.4% |
| 2022 | $1.2433 | +25.6% |
| 2021 | $0.9900 | +38.8% |
| 2020 | $0.7133 | -4.5% |
| 2019 | $0.7467 | +26.6% |
| 2018 | $0.5900 | -15.7% |
| 2017 | $0.7000 | +61.6% |
| 2016 | $0.4333 | -58.3% |
| 2015 | $1.0400 | +177.1% |
| 2014 | $0.3753 | +169.4% |
| 2013 | $0.1393 | -25.1% |
| 2012 | $0.1860 | +85.6% |
| 2011 | $0.1002 | +1.3% |
| 2010 | $0.0989 | +12.3% |
| 2009 | $0.0881 | +6.9% |
| 2008 | $0.0824 | +34.2% |
| 2007 | $0.0614 |
What's inside
As of Jun 30, 2026, the fund held 56 securities; the ten largest made up 76.11% of assets. It also reported 6.31% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| JOHNSON & JOHNSON | 22.44% | |
| ELI LILLY AND COMPANY | 22.25% | |
| MERCK & CO., INC. | 4.55% | |
| BRISTOL-MYERS SQUIBB COMPANY | 4.37% | |
| ROYALTY PHARMA PLC | 4.33% | |
| VIATRIS INC. | 4.22% | |
| PFIZER INC. | 3.96% | |
| ZOETIS INC. | 3.73% | |
| JAZZ PHARMACEUTICALS PUBLIC LIMITED COMPANY | 3.45% | |
| ELANCO ANIMAL HEALTH INCORPORATED | 2.81% | |
| AXSOME THERAPEUTICS, INC. | 2.41% | |
| CORCEPT THERAPEUTICS INCORPORATED | 1.90% | |
| LIGAND PHARMACEUTICALS INCORPORATED | 1.45% | |
| Definium Therapeutics Inc | 1.39% | |
| Liquidia Corp | 1.28% |
By country
United States 90.07%United Kingdom 4.33%Ireland 3.78%Canada 1.39%Singapore 0.2%By asset type
Stocks 99.92%By sector
Sectors of the companies held, for the 61.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $8.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.13%, +4.71%, +8.22%.
How it works
IHE follows the Dow Jones U.S. Select Pharmaceuticals Index, which is built by S&P Dow Jones Indices. The index covers companies that make prescription or over-the-counter drugs or vaccines, and it can include large, mid-size and small companies. The index provider, not BlackRock, decides which companies are in and how much each one weighs. As of June 30, 2026, the fund held 56 companies, and the 10 largest made up about 76% of assets. The two largest were Johnson & Johnson (22.4%) and Eli Lilly (22.2%), followed by Merck, Bristol-Myers Squibb and Royalty Pharma at about 4% to 4.5% each.
BlackRock Fund Advisors uses "representative sampling." Instead of buying every stock in the index, it may hold a sample chosen to match the index's overall traits, such as company size, industry mix and yield. Under normal conditions, at least 80% of net assets must be in index stocks. The fund may also use derivatives and hold cash to stay close to the index. As of June 30, 2026, it held one tiny derivatives position tied to health care stocks. The fund does not try to beat the index, and it does not turn defensive when markets fall.
The fund can lend up to one-third of its assets to other investors for a fee. The 6.31% cash position as of June 30, 2026, most likely reflects collateral from that lending. Portfolio turnover, the share of holdings replaced over a year, was 29%.
What it really costs
- IHE charges 0.37% a year, versus an average of 0.41% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $38 in the first year and $468 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IHE | $38 | $119 | $208 | $468 |
In a retirement portfolio
It is a single-industry fund with nearly half its assets in two stocks, so it fits better as a small add-on than as a foundation.
IHE could add a focused stake in large drugmakers, but a single-industry fund can swing hard. It fell 36.3% from its high in the 2008 financial crisis and 26.8% in the 2020 COVID crash. It got back to its high about 9 months and 4 months after those lows. The drop in the 2022 bear market was milder at 16%, but recovery took about 16 months. Its worst calendar year was 2008, when it lost 15.8%. Its deepest drop was 39.1%, from May 2007 to March 2009. Anyone who had to sell shares or draw income during a stretch like that would have locked in losses. The fund yielded 1.38% as of October 27, 2026, paid quarterly. It charges 0.37% a year, or $38 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a focused bet on U.S. drugmakers, led by Johnson & Johnson and Eli Lilly, for a 0.37% yearly fee.
- Diversified investors wanting a sector slice that moved loosely with the market; its one-year beta, a market-sensitivity gauge, was 0.26 as of October 27, 2026.
- Investors wanting an established fund: launched May 2006, with $1.14 billion in net assets as of June 30, 2026, more than PPH or XPH.
Look elsewhere if
- Cost-focused investors open to broader health care: XLV charges 0.08% and FHLC 0.084%, versus IHE's 0.37%.
- Anyone uneasy with two stocks dominating: Johnson & Johnson and Eli Lilly were each about 22% of the fund as of June 30, 2026.
- Those wanting market-like long-term growth: through December 31, 2025, its 10-year average annual return was 6.24%, versus 14.22% for the S&P Total Market Index.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IHE this fund | — | 0.37% | $1.14B | +39.8% | +25.0% |
| PPH VanEck Pharmaceutical ETF | 44% | 0.36% | $879.5M | +26.4% | +17.9% |
| XPH SPDR S&P Pharmaceuticals ETF | 38% | 0.35% | $428.4M | +30.8% | +23.1% |
| FTXH First Trust Nasdaq Pharmaceuticals ETF | 38% | 0.6% | $36.2M | +46.9% | +23.4% |
| XLV Health Care Select Sector SPDR Fund | 37% | 0.08% | $40.60B | +30.2% | +16.2% |
| IYH iShares U.S. Healthcare ETF | 36% | 0.39% | $3.56B | +23.8% | +15.0% |
| PJP Invesco Pharmaceuticals ETF | 36% | 0.56% | $472.1M | +34.0% | +24.3% |
| MEDX Horizon Kinetics Medical ETF | 35% | 0.85% | $19.1M | +19.1% | +13.9% |
Questions investors ask
What is IHE's expense ratio?
IHE's expense ratio, the yearly fee taken from fund assets, is 0.37%, according to its prospectus filed July 27, 2026. In the SEC's standard example, a $10,000 investment earning 5% a year and sold at the end of each period would cost about $38 over one year, $208 over five years and $468 over 10 years. That is a bit below the 0.41% average of similar funds and close to PPH (0.36%) and XPH (0.35%), but well above broad health care funds XLV (0.08%) and FHLC (0.084%).
What's the difference between IHE and PPH?
The main differences are holdings and track record, because the fees are nearly identical. IHE charges 0.37% a year, and PPH, the VanEck Pharmaceutical ETF, charges 0.36%. Their holdings overlapped by about 44%, so they are far from interchangeable. As of October 27, 2026, IHE's one-year market-price return was 39.8%, versus 26.4% for PPH. Over three years, IHE averaged 25% a year, versus 17.9% for PPH. IHE was also bigger, with about $1.14 billion in net assets versus $879 million for PPH as of June 30, 2026. Past returns may not repeat.
Does IHE pay dividends?
Yes, IHE pays dividends every quarter. In the year to October 27, 2026, it paid $1.43 per share, a yield of 1.38%. That is modest income, so the fund's main role is exposure to drug stocks, not steady payouts. Dividends pass through from the companies it owns, so the amount can change from quarter to quarter. The yield also moves as the share price changes.
What is IHE's 10-year average return?
IHE returned an average of 6.24% a year over the 10 years to December 31, 2025, according to its prospectus. That trailed the broad S&P Total Market Index, which returned 14.22% a year. It was also slightly below the fund's own index, at 6.52%. Returns were uneven: the fund gained 31.74% in 2025 but lost 11.72% in 2016 and 7.67% in 2018. Counting a 22.9% gain in 2026 through October 27, its 10-year market-price return to that date averaged 9.9% a year.
How did IHE do in stock market crashes?
It did no better than the overall market. IHE fell 36.3% in the 2008 financial crisis, while the market fell 34.4% over that period. It fell 26.8% in the 2020 COVID crash, the same as the market. In the 2022 bear market it dropped 16%, versus 13.4% for the market, and took about 16 months to recover. Its largest drop on record was 39.1%, from May 2007 to March 2009. People often see drug stocks as defensive, but this record shows they can still fall hard.