Which Healthcare ETF Offers the Better Growth Outlook: VanEck Biotech or Invesco Pharmaceuticals?

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Choosing Between VanEck Biotech and Invesco Pharmaceuticals ETFs

VanEck Biotech’s focused growth beats Invesco Pharmaceuticals’ steady income, but both have distinct roles.

South African investors looking at healthcare exposure face a clear choice between risk and reward. VanEck Biotech ETF (BBH) offers a concentrated bet on biotech leaders like Amgen and Gilead Sciences, with a low expense ratio and recent strong performance. This plays well if you believe innovation and new drug breakthroughs will continue driving growth. Meanwhile, Invesco Pharmaceuticals ETF (PJP) gives a broader pharmaceutical spread with lower volatility and higher dividends, anchored by names like Lilly benefiting from the GLP-1 boom. For rand investors, biotech’s higher beta means BBH could be more volatile alongside FX moves in USD/ZAR. If you want growth and can stomach swings, BBH looks better positioned. But if you prefer a steadier ride with income, PJP deserves a look. The main risk for BBH is that biotech valuations don’t hold if innovation stalls or regulatory hurdles rise, which would hit the fund hard. this is just our opinion and not financial advice