PPH and IYH Offer a Clear Tradeoff Between Yield and Diversification

PPH's higher yield comes from a tightly concentrated roster that raises single‑company and volatility risk.

Overview

PPH is a pharmaceutical‑focused ETF launched in 2011 that holds 26 stocks and concentrates roughly 19% in Eli Lilly and nearly 40% in its top three positions.
IYH is a broader U.S. healthcare ETF launched in 2000 that holds about 100 names across drugs, biotech, devices and services with Eli Lilly near a 15% weight.
PPH charges a 0.36% expense ratio and has a trailing 12‑month dividend yield of about 1.97%, while IYH charges 0.38% and yields about 1.17%.
Over the recent five‑year window PPH produced a stronger total return but a larger maximum drawdown and higher volatility, while IYH posted a more muted, steadier decline with a lower five‑year drawdown of 17.9%.
The practical investor decision is whether to accept PPH's concentrated, catalyst‑sensitive exposure for higher income and upside or choose IYH for broader diversification and lower single‑name risk, since niche pharma funds tend to react strongly to trial results, FDA actions and M&A.