iShares US Medical Devices ETF

IHI

Market cap $4.16B

iShares U.S. Medical Devices ETF continues to underperform the S&P 500, hitting multi-year relative lows since 2012. IHI's valuation remains elevated with a P/E above 25x and a high PEG ratio, while earnings growth is modest at 9.6%. The ETF is highly concentrated, with its top 10 holdings comprising over 75% of the portfolio and a persistently low dividend yield.

Designed to provide broad exposure to the Healthcare - Medical Devices segment of the equity market, the iShares U.S. Medical Devices ETF (IHI) is a passively managed exchange traded fund launched on May 1, 2006.

iShares U.S. Medical Devices ETF offers targeted exposure to U.S. medical device leaders, benefiting from demographic shifts and innovation, but is highly concentrated in top holdings. Current valuation metrics (P/E 31x, P/B 4.6x) are too high; I recommend holding and waiting for a price drop before buying. Industry growth is fueled by an aging population and technological advances like AI and 3D printing, supporting a strong long-term outlook.

If you're interested in broad exposure to the Healthcare - Medical Devices segment of the equity market, look no further than the iShares U.S. Medical Devices ETF (IHI), a passively managed exchange traded fund launched on 05/01/2006.

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The iShares U.S. Medical Devices ETF (IHI) was launched on 05/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Medical Devices segment of the equity market.

IHI's strategy provides exposure to the medical devices industry via a representative index sampling method. Here, I illustrate the fund has added zero risk-adjusted active return above the SPY these past 5 years. For those seeking to deviate from the benchmark and get bang for their buck, my recommendation is to avoid IHI for now.

The threat of cuts to Medicaid, plus uncertainty over what the confirmation of Robert F. Kennedy Jr. to lead the U.S. health bureaucracy will mean for the sector, have weighed on the stocks.

Investors cooled to the healthcare sector in 2024, which dramatically trailed global and US equity markets for the year. any investors are now asking: how will the policy changes under a new US administration affect healthcare companies?