(IYH) iShares U.S. Healthcare - Ratings and Ratios

The iShares U.S. Healthcare ETF (NYSE ARCA:IYH) is an exchange-traded fund that tracks the performance of the healthcare sector in the U.S. equity market, investing at least 80% of its assets in the underlying indexs component securities.

As a non-diversified fund, IYHs performance is closely tied to the healthcare sector, which includes pharmaceuticals, biotechnology, healthcare equipment, and healthcare services. Key Performance Indicators (KPIs) to monitor for this ETF include sector allocation, top holdings, and expense ratio. The funds underlying index is likely market-cap weighted, meaning that the largest healthcare companies have a greater influence on the funds performance.

To evaluate IYHs potential, we can examine its tracking error, which measures the difference between the funds returns and those of its underlying index. A lower tracking error indicates that the fund is more effectively tracking its benchmark. Additionally, we can analyze the funds dividend yield, which can provide insight into the income generated by the underlying holdings.

From a portfolio construction perspective, IYH can be used as a sector-specific allocation within a broader investment portfolio. Investors seeking to gain exposure to the healthcare sector can use IYH as a tactical or strategic holding, depending on their investment objectives and risk tolerance. Key metrics to consider when evaluating IYHs suitability include its correlation with other portfolio holdings, as well as its overall contribution to portfolio risk and return.