IHE vs. BBP

Last updated Jun 3, 2026

IHE (iShares U.S. Pharmaceuticals ETF) and BBP (Virtus LifeSci Biotech Products ETF) are both Health & Biotech Equities funds - IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index while BBP tracks the LifeSci Biotechnology Products Index. Both are passively managed. Over the past 10 years, IHE returned 7.69%/yr vs 11.47%/yr for BBP. A 0.70 correlation means they provide meaningful diversification when combined. IHE charges 0.42%/yr vs 0.79%/yr for BBP.

Performance

IHE vs. BBP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Pharmaceuticals ETF (IHE) and Virtus LifeSci Biotech Products ETF (BBP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IHE achieves a 5.25% return, which is significantly higher than BBP's 4.56% return. Over the past 10 years, IHE has underperformed BBP with an annualized return of 7.69%, while BBP has yielded a comparatively higher 11.47% annualized return.

IHE

• 1D: -1.44%
• 1M: 1.13%
• YTD: 5.25%
• 6M: 7.86%
• 1Y: 38.69%
• 3Y*: 17.02%
• 5Y*: 9.73%
• 10Y*: 7.69%

BBP

• 1D: -1.08%
• 1M: -1.65%
• YTD: 4.56%
• 6M: 8.34%
• 1Y: 45.32%
• 3Y*: 16.25%
• 5Y*: 10.24%
• 10Y*: 11.47%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IHE vs. BBP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHE iShares U.S. Pharmaceuticals ETF	5.25%	31.69%	8.13%	1.06%	-4.87%	13.07%	13.66%	15.47%	-7.76%	10.64%
BBP Virtus LifeSci Biotech Products ETF	4.56%	33.15%	3.32%	17.88%	0.85%	-8.17%	22.24%	24.73%	-13.95%	24.07%

Correlation

The correlation between IHE and BBP is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Dec 18, 2014	0.70

The correlation between IHE and BBP has been stable across timeframes, ranging from 0.61 to 0.70 - a consistent structural relationship.

IHE vs. BBP - Sectors Allocation Comparison

Sectors	IHE	BBP
Healthcare	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IHE vs. BBP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IHE

IHE Risk / Return Rank: 72
IHE Sharpe Ratio Rank: 68
IHE Sortino Ratio Rank: 73
IHE Omega Ratio Rank: 64
IHE Calmar Ratio Rank: 85
IHE Martin Ratio Rank: 73

BBP

BBP Risk / Return Rank: 67
BBP Sharpe Ratio Rank: 56
BBP Sortino Ratio Rank: 57
BBP Omega Ratio Rank: 51
BBP Calmar Ratio Rank: 88
BBP Martin Ratio Rank: 82

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IHE vs. BBP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) and Virtus LifeSci Biotech Products ETF (BBP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	IHE	BBP	Difference
Sharpe ratio Return per unit of total volatility	2.28	1.92	+0.36
Sortino ratio Return per unit of downside risk	3.33	2.75	+0.58
Omega ratio Gain probability vs. loss probability	1.39	1.32	+0.07
Calmar ratio Return relative to maximum drawdown	4.65	5.27	-0.63
Martin ratio Return relative to average drawdown	14.05	16.77	-2.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IHE vs. BBP - Sharpe Ratio Comparison

The current IHE Sharpe Ratio is 2.28, which is comparable to the BBP Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of IHE and BBP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IHE	BBP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.28	1.92	+0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.60	0.39	+0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.42	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.39	+0.11

Drawdowns

IHE vs. BBP - Drawdown Comparison

The maximum IHE drawdown since its inception was -38.20%, smaller than the maximum BBP drawdown of -44.32%. Use the drawdown chart below to compare losses from any high point for IHE and BBP.

Drawdown Indicators

	IHE	BBP	Difference
Max Drawdown Largest peak-to-trough decline	-38.20%	-44.32%	+6.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.47%	-9.28%	+0.81%
Max Drawdown (3Y) Largest decline over 3 years	-15.92%	-26.09%	+10.17%
Max Drawdown (5Y) Largest decline over 5 years	-16.03%	-38.28%	+22.25%
Max Drawdown (10Y) Largest decline over 10 years	-29.59%	-44.32%	+14.73%
Current Drawdown Current decline from peak	-3.91%	-7.56%	+3.65%
Average Drawdown Average peak-to-trough decline	-7.92%	-12.03%	+4.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.80%	2.92%	-0.12%

Volatility

IHE vs. BBP - Volatility Comparison

The current volatility for iShares U.S. Pharmaceuticals ETF (IHE) is 5.43%, while Virtus LifeSci Biotech Products ETF (BBP) has a volatility of 8.03%. This indicates that IHE experiences smaller price fluctuations and is considered to be less risky than BBP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IHE	BBP	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.43%	8.03%	-2.60%
Volatility (6M) Calculated over the trailing 6-month period	12.51%	18.56%	-6.05%
Volatility (1Y) Calculated over the trailing 1-year period	17.05%	23.85%	-6.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.23%	26.35%	-10.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.05%	27.40%	-9.35%

IHE vs. BBP - Expense Ratio Comparison

IHE has a 0.42% expense ratio, which is lower than BBP's 0.79% expense ratio.

Dividends

IHE vs. BBP - Dividend Comparison

IHE's dividend yield for the trailing twelve months is around 1.67%, while BBP has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BBP Virtus LifeSci Biotech Products ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.18%	0.00%	1.29%
IHE iShares U.S. Pharmaceuticals ETF	1.67%	1.76%	1.73%	1.39%	2.01%	1.49%	1.19%	1.40%	1.25%	1.36%	0.92%	1.93%

Frequently Asked Questions

Can I hold both IHE and BBP in my portfolio?

IHE and BBP have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHE or BBP?

BBP has higher volatility (8.03%) compared to IHE (5.43%). In terms of maximum drawdown, IHE dropped -38.20% vs BBP's -44.32%.

Which ETF is better, IHE or BBP?

On 10-year performance, BBP leads with 11.47% vs 7.69% for IHE. On fees, IHE is cheaper at 0.42% per year. On volatility, IHE has been the lower-risk option at 5.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHE or BBP?

Over the 10-year period, BBP has performed better with a 11.47% return vs 7.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHE or BBP?

IHE is cheaper with a 0.42% expense ratio, compared with 0.79% for BBP.

Which ETF pays a higher dividend yield, IHE or BBP?

IHE has the higher dividend yield at 1.67%, compared with 0.00% for BBP.

What is the main difference between IHE and BBP?

IHE tracks Dow Jones U.S. Select Pharmaceuticals Index, while BBP tracks LifeSci Biotechnology Products Index. They also come from different issuers: iShares and Virtus Investment Partners. Their fees differ too: 0.42% for IHE and 0.79% for BBP.

Which has better risk-adjusted returns?

IHE currently has the higher Sharpe Ratio (2.28 vs 1.92), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.