IHE vs SPY
iShares US Pharmaceutical ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IHE delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | IHE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $1.6B | $789.1B | |
| Dividend Yield | 1.48% | 1.01% | |
| Holdings | 60 | 505 | |
| YTD Return | +22.10% | +13.68% | |
| 1Y Return | +55.72% | +21.53% | |
| 3Y Return (annualized) | +18.91% | +21.44% | |
| 5Y Return (annualized) | +11.46% | +13.18% | |
| Volatility (annualized) | 15.6% | 15.3% | |
| Max Drawdown | -39.6% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Jan 22, 1993 |
IHE vs SPY Performance
iShares US Pharmaceutical ETF (IHE) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IHE returned +55.72% while SPY returned +21.53%. Year to date, IHE is up 22.10% versus a gain of 13.68% for SPY.
Over three years, IHE compounded at +18.91% per year against +21.44% for SPY; over five years the annualized figures are +11.46% and +13.18% respectively. Across the full 20-year window we track, IHE has the edge at +9.82% annualized vs +8.85%. 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 15.3% for SPY. 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 SPY. 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 SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IHE currently yields 1.48% against 1.01% for SPY.
Holdings Overlap
IHE and SPY share 7 holdings out of 553 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 SPY?
IHE has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, IHE or SPY?
Over the past year IHE returned +55.72% vs +21.53% for SPY, so IHE leads on 1-year performance. Over the longest common window we track (20 years), IHE annualized +9.82% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IHE or SPY?
IHE has been the more volatile fund at 15.6% annualized versus 15.3% for SPY. Worst drawdown: IHE -39.6% vs SPY -56.5%.
Should I hold both IHE and SPY?
IHE and SPY 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 SPY?
IHE and SPY share 7 common holdings with a 3.4% weight overlap. Combined, they hold 553 unique securities.
Which pays a higher dividend, IHE or SPY?
IHE yields 1.48% while SPY yields 1.01%, so IHE currently pays the higher dividend yield.
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