PJP vs. IBB: Which Healthcare ETF Is Better, fool.com reports

Investors weighing healthcare sector allocations face distinct structural choices between the Invesco Pharmaceuticals ETF and the iShares Biotechnology ETF, as both funds target narrow healthcare niches through entirely different portfolio constructions, fool.com reported on October 23, 2026.

• The iShares Biotechnology ETF held 243 biotechnology stocks with an expense ratio of 0.44 percent, according to fool.com data from October 22, 2026.
• The Invesco Pharmaceuticals ETF focused on 30 pharmaceutical companies involved in drug development and distribution, carrying a 0.58 percent expense ratio.
• Over the trailing 12-month period ending October 22, 2026, the biotech fund returned 37.7 percent while the pharmaceutical fund returned 33.9 percent.

The iShares Biotechnology ETF casts a broad net across hundreds of biotech firms, whereas the Invesco Pharmaceuticals ETF zeroes in on a tight group of drug developers, fool.com reported.

Share Prices and Expense Ratios on October 22, 2026

As of October 22, 2026, the iShares Biotechnology ETF traded at $209.54 per share with an expense ratio of 0.44 percent, fool.com reported. On the same date, the Invesco Pharmaceuticals ETF traded at $127.31 per share with a higher expense ratio of 0.58 percent. Investors pay $58 annually in fees for every $10,000 invested in the Invesco fund, compared with $44 for the same amount in the iShares fund. Quanteia.com highlighted that the biotechnology vehicle generated a 37.7 percent total return over the trailing 12 months, outpacing the pharmaceutical fund’s 33.9 percent gain.

Invesco Fund Outperforms iShares in Dividends and Returns

Income characteristics diverge alongside portfolio strategies. The Invesco Pharmaceuticals ETF posted a trailing-12-month dividend yield of 0.92 percent, supported by $1.13 per share paid over the period, fool.com reported. The iShares Biotechnology ETF distributed a trailing dividend yield of 0.16 percent, paying $0.34 per share over the same timeframe. Over a five-year horizon, however, a $1,000 investment in the Invesco fund grew to $1,685 in total return, outperforming the iShares fund’s growth to $1,352, according to fool.com data.

Invesco ETF Shows Lower Risk than iShares Fund

Price stability measures reveal stark differences in risk exposure between the two funds. The Invesco Pharmaceuticals ETF recorded a five-year monthly beta of 0.42 and a max drawdown of 17.5 percent, fool.com stated. In contrast, the iShares Biotechnology ETF carried a higher beta of 0.70 and suffered a max drawdown of nearly 40 percent during the 2022 bear market. Quanteia.com observed that institutional rebalancing across thematic healthcare funds and potential regulatory healthcare policy developments could alter passive liquidity profiles and disproportionately affect pharmaceuticals over commercial-stage biotechnology.

Portfolio Holdings and Market Positioning

The underlying composition of each fund shapes its sector exposure. The Invesco Pharmaceuticals ETF holds 27 stocks dedicated to drug research and manufacturing, featuring large positions in Gilead Sciences, Pfizer, and AbbVie, fool.com reported. The iShares Biotechnology ETF holds 243 biotechnology stocks, with largest positions in Gilead Sciences, Vertex Pharmaceuticals, and Amgen.

Disclaimer: The information provided in this article is for educational and scientific communication purposes only and does not constitute medical advice. Always consult with a qualified healthcare provider regarding any medical condition, diagnosis, or treatment plan.