The iShares U.S. Medical Devices ETF (IHI) was launched on May 1, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Medical Devices segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Medical Devices is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.79 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. IHI seeks to match the performance of the Dow Jones U.S. Select Medical Equipment Index before fees and expenses.
The Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.37%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.
Looking at individual holdings, Abbott Laboratories (ABT) accounts for about 17.77% of total assets, followed by Intuitive Surgical (ISRG) and Medtronic Plc (MDT).
The top 10 holdings account for about 75.65% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Medical Devices ETF has lost about 8.75% so far, and is down about 5.68% over the last 12 months (as of 11/03/2026). IHI has traded between $47.55 and $64.47 in this past 52-week period.
The ETF has a beta of 0.82 and standard deviation of 17.91% for the trailing three-year period, making it a medium risk choice in the space. With about 54 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares U.S. Medical Devices ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IHI is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX MEDICAL DEVICES INDEX and the State Street SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. First Trust Indxx Medical Devices ETF has $3.33 million in assets, State Street SPDR S&P Health Care Equipment ETF has $153.07 million. MDEV has an expense ratio of 0.7%, and XHE charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Medical Devices ETF (IHI): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
