IHE vs IVV
iShares US Pharmaceutical ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IHE delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IHE | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $1.6B | $865.2B | |
| Dividend Yield | 1.48% | 1.09% | |
| Holdings | 60 | 508 | |
| YTD Return | +22.11% | +14.50% | |
| 1Y Return | +52.49% | +22.02% | |
| 3Y Return (annualized) | +18.90% | +21.80% | |
| 5Y Return (annualized) | +11.23% | +13.37% | |
| Volatility (annualized) | 15.6% | 15.1% | |
| Max Drawdown | -39.6% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | May 15, 2000 |
IHE vs IVV Performance
iShares US Pharmaceutical ETF (IHE) is a ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year IHE returned +52.49% while IVV returned +22.02%. Year to date, IHE is up 22.11% versus a gain of 14.50% for IVV.
Over three years, IHE compounded at +18.90% per year against +21.80% for IVV; over five years the annualized figures are +11.23% and +13.37% respectively. Across the full 20-year window we track, IHE has the edge at +9.82% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IHE has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -39.6% for IHE and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHE charges 0.38% per year while IVV charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, IHE currently yields 1.48% against 1.09% for IVV.
Holdings Overlap
IHE and IVV share 8 holdings out of 554 unique holdings combined, representing a 3.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IHE or IVV?
IHE has an expense ratio of 0.38% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IHE or IVV?
Over the past year IHE returned +52.49% vs +22.02% for IVV, so IHE leads on 1-year performance. Over the longest common window we track (20 years), IHE annualized +9.82% vs +7.07% for IVV. Past performance does not guarantee future results.
Which is riskier, IHE or IVV?
IHE has been the more volatile fund at 15.6% annualized versus 15.1% for IVV. Worst drawdown: IHE -39.6% vs IVV -56.5%.
Should I hold both IHE and IVV?
IHE and IVV have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHE and IVV?
IHE and IVV share 8 common holdings with a 3.4% weight overlap. Combined, they hold 554 unique securities.
Which pays a higher dividend, IHE or IVV?
IHE yields 1.48% while IVV yields 1.09%, so IHE currently pays the higher dividend yield.
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