IHE vs VOO
iShares US Pharmaceutical ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IHE delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | IHE | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $1.6B | $979.0B | |
| Dividend Yield | 1.48% | 1.09% | |
| Holdings | 60 | 509 | |
| YTD Return | +22.11% | +14.48% | |
| 1Y Return | +52.49% | +22.02% | |
| 3Y Return (annualized) | +18.90% | +21.80% | |
| 5Y Return (annualized) | +11.23% | +13.36% | |
| Volatility (annualized) | 15.6% | 14.2% | |
| Max Drawdown | -39.6% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Sep 7, 2010 |
IHE vs VOO Performance
iShares US Pharmaceutical ETF (IHE) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IHE returned +52.49% while VOO returned +22.02%. Year to date, IHE is up 22.11% versus a gain of 14.48% for VOO.
Over three years, IHE compounded at +18.90% per year against +21.80% for VOO; over five years the annualized figures are +11.23% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +9.82%. 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 14.2% for VOO. 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 -34.3% for VOO. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHE charges 0.38% per year while VOO 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 VOO.
Holdings Overlap
IHE and VOO share 7 holdings out of 555 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 VOO?
IHE has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IHE or VOO?
Over the past year IHE returned +52.49% vs +22.02% for VOO, so IHE leads on 1-year performance. Over the longest common window we track (16 years), IHE annualized +9.82% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, IHE or VOO?
IHE has been the more volatile fund at 15.6% annualized versus 14.2% for VOO. Worst drawdown: IHE -39.6% vs VOO -34.3%.
Should I hold both IHE and VOO?
IHE and VOO have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHE and VOO?
IHE and VOO share 7 common holdings with a 3.4% weight overlap. Combined, they hold 555 unique securities.
Which pays a higher dividend, IHE or VOO?
IHE yields 1.48% while VOO yields 1.09%, so IHE currently pays the higher dividend yield.
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