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Should You Invest in the iShares U.S. Healthcare Providers ETF (IHF)?

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The iShares U.S. Healthcare Providers ETF (IHF - Free Report) was launched on May 1, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Healthcare - Providers segment of the equity market.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Healthcare - Providers is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $768.63 million, making it one of the larger ETFs attempting to match the performance of the Healthcare - Healthcare - Providers segment of the equity market. IHF seeks to match the performance of the Dow Jones U.S. Select HealthCare Providers Index before fees and expenses.

The Dow Jones U.S. Select HealthCare Providers Index is free-float adjusted market capitalization-weighted index. It measures the performance of the health care providers sub-sector of the U.S. equity market. It includes health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes rehabilitation & retirement centres.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.38%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.05%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.

Looking at individual holdings, Unitedhealth Group Inc (UNH) accounts for about 21.87% of total assets, followed by Cvs Health Corp (CVS) and Cigna (CI).

The top 10 holdings account for about 71.51% of total assets under management.

Performance and Risk

So far this year, IHF has gained about 0.9%, and was up about 0.71% in the last one year (as of 12/23/2025). During this past 52-week period, the fund has traded between $40.81 and $54.6.

The ETF has a beta of 0.66 and standard deviation of 17.9% for the trailing three-year period, making it a medium risk choice in the space. With about 65 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Healthcare Providers ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IHF is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.

() tracks . The fund has $0.00 million in assets. has an expense ratio of 0%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


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