Key Points
VanEck Pharmaceutical ETF features a lower expense ratio of 0.36% compared to 0.58% for Invesco Biotechnology & Genome ETF.
Invesco Biotechnology & Genome ETF delivered a higher 1-year total return of 47.3% but experienced a significantly deeper maximum drawdown of 34.7%.
VanEck Pharmaceutical ETF is more concentrated, with its top holding Eli Lilly & Co representing more than 20% of its total assets.
VanEck Pharmaceutical ETF (NASDAQ:PPH) provides lower-cost exposure to established drug manufacturers with lower historical volatility, while Invesco Biotechnology & Genome ETF (NYSEMKT:PBE) targets high-growth biotech companies at a higher expense.
These two healthcare funds offer distinct ways to play the life sciences sector. While the VanEck fund concentrates on major pharmaceutical giants, the Invesco fund focuses on companies in the biotech and genomic space, selecting them based on factors like earnings growth and price momentum.
Snapshot (cost & size)
| Metric | PBE | PPH |
|---|---|---|
| Issuer | Invesco | VanEck |
| Share price (as of 8/10/26) | $93.84 | $112.74 |
| Expense ratio | 0.58% | 0.36% |
| 1-yr return (as of 8/10/26) | 47.3% | 39.0% |
| Dividend yield | 1.6% | 1.9% |
| Beta | 0.70 | 0.46 |
| AUM | $365.6 million | $979.4 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors may prefer the VanEck Pharmaceutical ETF, which has an expense ratio of 0.36%. This is notably more affordable than the 0.58% charged by the Invesco Biotechnology & Genome ETF. Additionally, the VanEck fund offers a higher trailing-12-month dividend payout.
Performance & risk comparison
| Metric | PBE | PPH |
|---|---|---|
| Max drawdown (5 yr) | (37.8%) | (20.3%) |
| Growth of $1,000 over 5 years (total return) | $1,268 | $1,658 |
What's inside
VanEck Pharmaceutical ETF tracks the overall performance of 27 companies involved in pharmaceutical research, development, and sales. Its largest positions include Eli Lilly & Co at 20.17%, Novartis Ag at 10.32%, and Merck & Co. at 9.74%. The fund was launched in 2011. VanEck Pharmaceutical ETF has paid $2.17 per share over the trailing 12 months, which on its recent ~$112.74 share price works out to a 1.9% yield.
Invesco Biotechnology & Genome ETF focuses on 31 U.S. companies that it selects based on factors like momentum, earnings growth, and management quality. Its largest positions include Regeneron Pharmaceuticals at 5.5%, Amgen Inc at 5.36%, and Vertex Pharmaceuticals at 5.2%. The fund was launched in 2005. Invesco Biotechnology & Genome ETF has paid $1.55 per share over the trailing 12 months, which on its recent ~$93.84 share price works out to a 1.6% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
If you’re interested in investing in the biotechnology or pharmaceuticals industries, an ETF is a smart way to go. Buying a basket of stocks eliminates the need to closely monitor the results of individual companies, which can vary wildly as they navigate the complex and expensive developmental, regulatory, and marketing stages of bringing a product to market.
The VanEck Pharmaceutical ETF and Invesco Biotechnology & Genome ETF both present compelling options in the space. PPH’s lower expense ratio, higher dividend, and larger assets under management may appeal to more cost-conscious investors, but it’s also more volatile and more highly concentrated, with its top three stocks making up about 40% of the overall fund. It’s probably the better option for more conservative investors who are more comfortable riding the industry’s ups and downs on the backs of the pharmaceutical giants.
PBE has delivered a better one-year return, but also a steeper max drawdown over the last five years — two factors that are characteristic of a fund that includes momentum and earnings growth in its selection criteria. This may be a more compelling option for those interested in the big gains that can be realized in the competitive biotech space, and who can stomach a little more uncertainty in order to get there.
Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen, Eli Lilly, Merck, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.