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

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

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Investor-friendly, sector ETFs provide many options 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 6, placing it in top 38%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $1.46 billion, 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

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.37%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.92%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 (UNH) accounts for about 21.72% of total assets, followed by Cvs Health (CVS) and Elevance Health Inc (ELV).

The top 10 holdings account for about 73.09% of total assets under management.

Performance and Risk

The ETF has added roughly 24.59% and is up roughly 23.24% so far this year and in the past one year (as of 11/04/2026), respectively. IHF has traded between $40.98 and $60.9 during this last 52-week period.

The ETF has a beta of 0.68 and standard deviation of 19.11% for the trailing three-year period, making it a medium risk choice in the space. With about 63 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Healthcare Providers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IHF is an outstanding option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

() 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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