IYH Beats IXJ on Returns While Global Fund Offers Higher Yield

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U.S. Healthcare ETF Edges Out Global Peers But Yield Plays Matter

IYH beats IXJ on returns, but IXJ’s higher yield and global spread have their place.

U.S. healthcare stocks represented by iShares’ IYH ETF have outperformed their global healthcare counterparts in IXJ over the past year. While IYH delivered strong returns (28.8%), IXJ’s broader international exposure and higher dividend yield (1.4% vs 1.1%) make it attractive for income-focused investors. South African investors might think IYH’s performance validates a focus on robust domestic healthcare innovators, but the global fund’s diversification helps hedge against U.S.-specific risks like patent cliffs impacting big pharma giants such as Johnson & Johnson and AbbVie. Local banks and insurers tied to global markets, like Standard Bank and Sanlam, may also indirectly benefit from global healthcare sector dynamics, especially if international dividends fuel rand inflows. That said, if new U.S. drug approvals or breakthroughs in GLP-1 drugs accelerate, IYH could keep pulling ahead. Conversely, global regulatory pressures could widen the yield gap and make IXJ more appealing. this is just our opinion and not financial advice