Share-split context: A forward split was recorded on Mar 7, 2024 with coefficient 5. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The iShares U.S. Healthcare Providers ETF (ticker: IHF) is an exchange-traded fund that focuses on companies providing healthcare services in the United States. Instead of buying just one company, this ETF allows investors to own a small piece of many different healthcare businesses at once.

Based on the top holdings, this fund includes large companies like UnitedHealth Group Inc and CVS Health Corp. Because it holds many different stocks, it spreads its exposure across various parts of the healthcare industry.

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and the money paid out through distributions.

Here is how the ETF has performed:

• Year-to-Date (YTD): The price return is approximately 16.72%, while the total return is approximately 17.48%.

• One Year: The price return was approximately 9.58%, and the total return was approximately 10.79%.

• Three Years: The price return was approximately 11.94%, and the total return was approximately 14.93%.

This ETF has a history of "forward splits." This means that in the past, one old share became multiple new shares. When this happens, the price per share drops, but your total ownership stays the same.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 0.97%. It usually pays these out quarterly, and it has made four payments over the last 12 months.

It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same thing as your total return.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. Some investors worry that high payouts might cause this.

However, for this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.

Pros

• Positive Returns: The ETF has shown positive price returns and total returns over the one-year and three-year periods.

• Diversification: It holds 62 different companies, which helps spread risk across the healthcare sector.

• Strong Income Rating: The fund has an income rating grade of "A."

Cons

• Partial Data: The list of top holdings is only a partial list; there are many other companies in the fund not shown here.

• Concentration: A few large companies, like UnitedHealth Group Inc, make up a significant portion of the fund.

Beginner takeaway

The IHF ETF tracks healthcare providers in the U.S. It has shown growth in both its share price and its total return over the last few years. While it pays a small amount of cash through distributions, it does not currently show signs of price erosion. Always remember that holdings can change over time.