PPH vs. IHE

Last updated Jun 24, 2026

PPH (VanEck Pharmaceutical ETF) and IHE (iShares U.S. Pharmaceuticals ETF) are both Health & Biotech Equities funds - PPH tracks the MVIS US Listed Pharmaceutical 25 Index while IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index. Both are passively managed. Over the past 10 years, PPH returned 8.52%/yr vs 8.99%/yr for IHE. Their correlation of 0.88 suggests significant overlap in exposure. PPH charges 0.36%/yr vs 0.42%/yr for IHE.

Performance

PPH vs. IHE - Performance Comparison

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

Returns By Period

In the year-to-date period, PPH achieves a 2.92% return, which is significantly lower than IHE's 11.65% return. Over the past 10 years, PPH has underperformed IHE with an annualized return of 8.52%, while IHE has yielded a comparatively higher 8.99% annualized return.

PPH

• 1D: 1.79%
• 1M: 0.31%
• YTD: 2.92%
• 6M: 2.77%
• 1Y: 23.31%
• 3Y*: 12.54%
• 5Y*: 9.67%
• 10Y*: 8.52%

IHE

• 1D: 1.60%
• 1M: 3.16%
• YTD: 11.65%
• 6M: 10.97%
• 1Y: 46.87%
• 3Y*: 18.43%
• 5Y*: 10.55%
• 10Y*: 8.99%

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

PPH vs. IHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPH VanEck Pharmaceutical ETF	2.92%	22.00%	8.05%	6.95%	2.64%	17.79%	5.49%	19.39%	-5.89%	15.23%
IHE iShares U.S. Pharmaceuticals ETF	11.65%	31.69%	8.13%	1.06%	-4.87%	13.07%	13.66%	15.47%	-7.76%	10.64%

Correlation

The correlation between PPH and IHE is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.88

The correlation between PPH and IHE has been stable across timeframes, ranging from 0.88 to 0.91 - a consistent structural relationship.

PPH vs. IHE - Sectors Allocation Comparison

Sectors	PPH	IHE
Healthcare	100.0%	100.0%
Industrials	0.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PPH vs. IHE — Risk / Return Rank

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

PPH

PPH Risk / Return Rank: 40
PPH Sharpe Ratio Rank: 39
PPH Sortino Ratio Rank: 42
PPH Omega Ratio Rank: 37
PPH Calmar Ratio Rank: 46
PPH Martin Ratio Rank: 36

IHE

IHE Risk / Return Rank: 87
IHE Sharpe Ratio Rank: 88
IHE Sortino Ratio Rank: 90
IHE Omega Ratio Rank: 82
IHE Calmar Ratio Rank: 91
IHE Martin Ratio Rank: 85

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.

PPH vs. IHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Pharmaceutical ETF (PPH) 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.

	PPH	IHE	Difference
Sharpe ratio: Return per unit of total volatility	1.33	2.74	-1.41
Sortino ratio: Return per unit of downside risk	2.07	3.95	-1.88
Omega ratio: Gain probability vs. loss probability	1.24	1.46	-0.22
Calmar ratio: Return relative to maximum drawdown	2.18	5.56	-3.38
Martin ratio: Return relative to average drawdown	5.30	17.09	-11.80

PPH vs. IHE - Sharpe Ratio Comparison

The current PPH Sharpe Ratio is 1.33, which is lower than the IHE Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of PPH and IHE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PPH vs. IHE - Drawdown Comparison

The maximum PPH drawdown since its inception was -51.45%, which is greater than IHE's maximum drawdown of -38.20%. Use the drawdown chart below to compare losses from any high point for PPH and IHE.

Drawdown Indicators

	PPH	IHE	Difference
Max Drawdown Largest peak-to-trough decline	-51.45%	-38.20%	-13.25%
Max Drawdown (1Y) Largest decline over 1 year	-10.76%	-8.47%	-2.29%
Max Drawdown (3Y) Largest decline over 3 years	-18.06%	-15.92%	-2.14%
Max Drawdown (5Y) Largest decline over 5 years	-20.26%	-16.03%	-4.23%
Max Drawdown (10Y) Largest decline over 10 years	-29.70%	-29.59%	-0.11%
Current Drawdown Current decline from peak	-4.94%	-0.70%	-4.24%
Average Drawdown Average peak-to-trough decline	-17.29%	-7.90%	-9.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.41%	2.75%	+1.66%

Volatility

PPH vs. IHE - Volatility Comparison

VanEck Pharmaceutical ETF (PPH) has a higher volatility of 6.27% compared to iShares U.S. Pharmaceuticals ETF (IHE) at 5.27%. This indicates that PPH's price experiences larger fluctuations and is considered to be riskier than IHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPH	IHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.27%	5.27%	+1.00%
Volatility (6M) Calculated over the trailing 6-month period	12.27%	12.68%	-0.41%
Volatility (1Y) Calculated over the trailing 1-year period	17.66%	17.22%	+0.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.17%	16.28%	-1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.98%	18.05%	-1.07%

PPH vs. IHE - Expense Ratio Comparison

PPH has a 0.36% expense ratio, which is lower than IHE's 0.42% expense ratio.

Dividends

PPH vs. IHE - Dividend Comparison

PPH's dividend yield for the trailing twelve months is around 2.05%, more than IHE's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHE iShares U.S. Pharmaceuticals ETF	1.56%	1.76%	1.73%	1.39%	2.01%	1.49%	1.19%	1.40%	1.25%	1.36%	0.92%	1.93%
PPH VanEck Pharmaceutical ETF	2.05%	1.78%	1.98%	2.09%	1.55%	1.62%	1.66%	1.77%	1.97%	1.92%	2.43%	1.93%

Frequently Asked Questions

Can I hold both PPH and IHE in my portfolio?

With a correlation of 0.91, PPH and IHE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PPH or IHE?

PPH has higher volatility (6.27%) compared to IHE (5.27%). In terms of maximum drawdown, PPH dropped -51.45% vs IHE's -38.20%.

Which ETF is better, PPH or IHE?

On 10-year performance, IHE leads with 8.99% vs 8.52% for PPH. On fees, PPH is cheaper at 0.36% per year. On volatility, IHE has been the lower-risk option at 5.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPH or IHE?

Over the 10-year period, IHE has performed better with a 8.99% return vs 8.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPH or IHE?

PPH is cheaper with a 0.36% expense ratio, compared with 0.42% for IHE.

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

PPH has the higher dividend yield at 2.05%, compared with 1.56% for IHE.

What is the main difference between PPH and IHE?

PPH tracks MVIS US Listed Pharmaceutical 25 Index, while IHE tracks Dow Jones U.S. Select Pharmaceuticals Index. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.36% for PPH and 0.42% for IHE.

Which has better risk-adjusted returns?

IHE currently has the higher Sharpe Ratio (2.74 vs 1.33), 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.