MDEV vs. IHE
MDEV (First Trust Indxx Medical Devices ETF) and IHE (iShares U.S. Pharmaceuticals ETF) are both Health & Biotech Equities funds - MDEV tracks the Indxx Global Medical Equipment Index while IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index. Both are passively managed. Over the past 5 years, MDEV returned -4.76%/yr vs 11.99%/yr for IHE. A 0.58 correlation means they provide meaningful diversification when combined. MDEV charges 0.70%/yr vs 0.38%/yr for IHE.
Performance
MDEV vs. IHE - Performance Comparison
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Returns By Period
In the year-to-date period, MDEV achieves a -4.66% return, which is significantly lower than IHE's 18.78% return.
MDEV
- 1D
- 1.70%
- 1M
- 6.61%
- 6M
- -7.63%
- YTD
- -4.66%
- 1Y
- -0.51%
- 3Y*
- -1.56%
- 5Y*
- -4.76%
- 10Y*
- —
IHE
- 1D
- 1.15%
- 1M
- 7.32%
- 6M
- 17.14%
- YTD
- 18.78%
- 1Y
- 50.28%
- 3Y*
- 21.71%
- 5Y*
- 11.99%
- 10Y*
- 8.75%
MDEV vs. IHE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
MDEV First Trust Indxx Medical Devices ETF | -4.66% | 2.00% | 1.79% | 7.55% | -28.59% | 3.83% |
IHE iShares U.S. Pharmaceuticals ETF | 18.78% | 31.69% | 8.13% | 1.06% | -4.87% | 8.21% |
Correlation
The correlation between MDEV and IHE is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Jun 23, 2021 | 0.58 |
The correlation between MDEV and IHE has been stable across timeframes, ranging from 0.49 to 0.59 - a consistent structural relationship.
MDEV vs. IHE - Sectors Allocation Comparison
Sectors
MDEV
IHE
Healthcare
Basic Materials
-
-
Communication Services
-
-
Consumer Cyclical
-
-
Consumer Defensive
-
-
Energy
-
-
Financial Services
-
-
Industrials
-
-
Real Estate
-
-
Technology
-
-
Utilities
-
-
Healthcare
MDEV
IHE
Basic Materials
MDEV
-
IHE
-
Communication Services
MDEV
-
IHE
-
Consumer Cyclical
MDEV
-
IHE
-
Consumer Defensive
MDEV
-
IHE
-
Energy
MDEV
-
IHE
-
Financial Services
MDEV
-
IHE
-
Industrials
MDEV
-
IHE
-
Real Estate
MDEV
-
IHE
-
Technology
MDEV
-
IHE
-
Utilities
MDEV
-
IHE
-
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Return for Risk
MDEV vs. IHE — Risk / Return Rank
MDEV
IHE
MDEV vs. IHE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Medical Devices ETF (MDEV) and iShares U.S. Pharmaceuticals ETF (IHE). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| MDEV | IHE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.86 | ||
| Sortino ratioReturn per unit of downside risk | -4.07 | ||
| Omega ratioGain probability vs. loss probability | 1.01 | 1.47 | -0.47 |
| Calmar ratioReturn relative to maximum drawdown | -0.03 | 5.96 | -5.99 |
| Martin ratioReturn relative to average drawdown | -0.06 | 18.03 | -18.09 |
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Drawdowns
MDEV vs. IHE - Drawdown Comparison
The maximum MDEV drawdown since its inception was -42.34%, which is greater than IHE's maximum drawdown of -38.20%. Use the drawdown chart below to compare losses from any high point for MDEV and IHE.
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Drawdown Indicators
| MDEV | IHE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -42.34% | -38.20% | -4.14% |
Max Drawdown (1Y)Largest decline over 1 year | -18.13% | -8.47% | -9.66% |
Max Drawdown (3Y)Largest decline over 3 years | -22.50% | -15.92% | -6.58% |
Max Drawdown (5Y)Largest decline over 5 years | -42.34% | -16.03% | -26.31% |
Max Drawdown (10Y)Largest decline over 10 years | — | -29.59% | — |
Current DrawdownCurrent decline from peak | -28.65% | -3.18% | -25.47% |
Average DrawdownAverage peak-to-trough decline | -25.76% | -7.88% | -17.88% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.28% | 2.80% | +5.48% |
Volatility
MDEV vs. IHE - Volatility Comparison
The current volatility for First Trust Indxx Medical Devices ETF (MDEV) is 5.61%, while iShares U.S. Pharmaceuticals ETF (IHE) has a volatility of 6.65%. This indicates that MDEV experiences smaller price fluctuations and is considered to be less risky than IHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MDEV | IHE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.61% | 6.65% | -1.04% |
Volatility (6M)Calculated over the trailing 6-month period | 12.58% | 13.73% | -1.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.66% | 18.00% | -1.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.09% | 16.49% | +2.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.98% | 18.06% | +0.92% |
MDEV vs. IHE - Expense Ratio Comparison
MDEV has a 0.70% expense ratio, which is higher than IHE's 0.38% expense ratio.
Dividends
MDEV vs. IHE - Dividend Comparison
MDEV's dividend yield for the trailing twelve months is around 0.11%, less than IHE's 1.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IHE iShares U.S. Pharmaceuticals ETF | 1.47% | 1.76% | 1.73% | 1.39% | 2.01% | 1.49% | 1.19% | 1.40% | 1.25% | 1.36% | 0.92% | 1.93% |
MDEV First Trust Indxx Medical Devices ETF | 0.11% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
MDEV and IHE have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IHE has higher volatility (6.65%) compared to MDEV (5.61%). In terms of maximum drawdown, MDEV dropped -42.34% vs IHE's -38.20%.
On 5-year performance, IHE leads with 11.99% vs -4.76% for MDEV. On fees, IHE is cheaper at 0.38% per year. On volatility, MDEV has been the lower-risk option at 5.61%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, IHE has performed better with a 11.99% return vs -4.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IHE is cheaper with a 0.38% expense ratio, compared with 0.70% for MDEV.
IHE has the higher dividend yield at 1.47%, compared with 0.11% for MDEV.
MDEV tracks Indxx Global Medical Equipment Index, while IHE tracks Dow Jones U.S. Select Pharmaceuticals Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.70% for MDEV and 0.38% for IHE.
IHE currently has the higher Sharpe Ratio (2.83 vs -0.03), 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.
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