iShares' IYH or Invesco's PBE: Which Healthcare ETF Is the Better Long-Term Buy?

The iShares U.S. Healthcare ETF (NYSEMKT:IYH) provides broad sector exposure at a lower cost, while the Invesco Biotechnology & Genome ETF (NYSEMKT:PBE) offers a concentrated, high-conviction bet on genomics.

Investors seeking healthcare exposure often choose between broad industry coverage and niche subsectors. This comparison pits the wide-reaching iShares fund against the specialized Invesco biotech fund to determine which approach fits a portfolio's risk tolerance and growth objectives as of Aug. 28, 2026.

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The iShares fund is more affordable, carrying a 0.38% expense ratio compared to the 0.58% fee for the Invesco fund. The Invesco fund currently offers a higher payout, with a 0.49 percentage point lead in dividend yield over its peer.

Growth of $1,000 over 5 years (total return)

The iShares U.S. Healthcare ETF tracks a broad index of American healthcare stocks, maintaining a diversified portfolio of 100 positions. Its exposure is primarily concentrated in healthcare at 99%, with a 1% allocation to technology. Largest positions in the fund include Eli Lilly (NYSE:LLY) at 14.97%, Johnson & Johnson (NYSE:JNJ) at 10.00%, and Abbvie (NYSE:ABBV) at 7.15%. This fund was launched in 2000 and currently manages $3.9 billion in assets under management (AUM). iShares U.S. Healthcare ETF has paid $0.80 per share over the trailing 12 months, which on its recent ~$72.63 share price works out to a 1.1% yield.

The Invesco Biotechnology & Genome ETF targets a much narrower slice of the market by tracking the Dynamic Biotech & Genome Intellidex Index. It holds 31 companies focused on biotech research and genetic engineering, with a portfolio entirely weighted toward healthcare. Its top holdings include CareDx (NASDAQ:CDNA) at 5.48%, Amgen (NASDAQ:AMGN) at 5.38%, and Regeneron Pharmaceuticals (NASDAQ:REGN) at 5.26%. The fund was launched in 2005 and has $404.8 million in AUM. Invesco Biotechnology & Genome ETF has paid $1.55 per share over the trailing 12 months, which on its recent ~$98.54 share price works out to a 1.6% yield.