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

Core Viewpoint - The iShares U.S. Healthcare Providers ETF (IHF) offers broad exposure to the healthcare providers segment, appealing to both institutional and retail investors due to its low cost and transparency [1][2]. Group 1: ETF Overview - The iShares U.S. Healthcare Providers ETF was launched on May 1, 2006, and is passively managed [1]. - The fund is sponsored by Blackrock and has accumulated over $742.15 million in assets, making it one of the larger ETFs in its segment [3]. - IHF aims to match the performance of the Dow Jones U.S. Select HealthCare Providers Index [3]. Group 2: Index and Holdings - The Dow Jones U.S. Select HealthCare Providers Index is a free-float adjusted market capitalization-weighted index that includes various healthcare providers such as hospitals and nursing homes [4]. - The ETF has a 100% allocation in the healthcare sector, with Unitedhealth Group Inc (UNH) making up approximately 23.08% of total assets [6][7]. - The top 10 holdings constitute about 72.35% of total assets under management [7]. Group 3: Costs and Performance - The annual operating expenses for the ETF are 0.4%, and it has a 12-month trailing dividend yield of 0.96% [5]. - The ETF has experienced a loss of about 3.05% year-to-date and is down approximately 17.49% over the past year [8]. - IHF has a beta of 0.67 and a standard deviation of 18.36% over the trailing three-year period, indicating medium risk [8]. Group 4: Investment Considerations - The ETF carries a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to healthcare ETFs [10].