IHF - ETF AI Analysis

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iShares U.S. Healthcare Providers ETF (IHF)

Rating:69Neutral

Price Target:

$52.00

The iShares U.S. Healthcare Providers ETF (IHF) has a solid overall rating, reflecting its exposure to strong-performing healthcare companies. UnitedHealth (UNH), the largest holding, contributes significantly with its strategic initiatives and financial strength, though challenges like high medical costs slightly temper its impact. Quest Diagnostics (DGX) stands out as a key positive driver, supported by robust financial performance and growth potential through acquisitions and advanced diagnostics. However, holdings like Humana (HUM) and Veeva Systems (VEEV) face challenges with bearish technical trends and valuation concerns, which may have weighed on the ETF's overall score. A notable risk is the ETF's concentration in a single sector, which could make it vulnerable to industry-specific challenges.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past three months, reflecting positive momentum in the healthcare sector.

Focused Sector Exposure

With nearly all assets in healthcare, the ETF provides targeted exposure to a resilient and essential industry.

Reasonable Expense Ratio

The fund's expense ratio is relatively low, making it cost-effective compared to actively managed alternatives.

Negative Factors

Over-Concentration in Top Holdings

UnitedHealth alone accounts for over 22% of the portfolio, creating significant reliance on a single company’s performance.

Weak Performance from Largest Holding

UnitedHealth, the ETF's largest position, has underperformed year-to-date, potentially dragging overall returns.

Limited Geographic Diversification

The ETF is almost entirely focused on U.S. companies, offering little exposure to international markets.

IHF vs. SPDR S&P 500 ETF (SPY)

AUM731.10M

RegionNorth America

Expense Ratio0.38%

Beta0.40

IssueriShares

Inception DateMay 01, 2006

Dividend Yield0.79%

Asset ClassEquity

Index TrackedDJ US Select / Health Care Providers

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume211,450

30 Day Avg. Volume300,111

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

55.61

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering64

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IHF Summary

The iShares U.S. Healthcare Providers ETF (IHF) is an investment fund that focuses on companies in the U.S. healthcare providers and services sector, such as hospitals, insurance companies, and diagnostic services. It includes well-known companies like UnitedHealth and CVS Health, which are leaders in delivering essential medical services. This ETF might appeal to investors looking for growth opportunities in the healthcare industry, which is expected to expand due to aging populations and advancements in technology. However, new investors should be aware that the ETF’s performance is closely tied to the healthcare sector, meaning it could be affected by changes in healthcare regulations or industry-specific challenges.

How much will it cost me?The iShares U.S. Healthcare Providers ETF (IHF) has an expense ratio of 0.38%, meaning you’ll pay $3.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it focuses on a specific sector and is passively managed, offering targeted exposure to healthcare providers. It’s a reasonable cost for the specialized focus it provides.

What would affect this ETF?The iShares U.S. Healthcare Providers ETF (IHF) could benefit from rising demand for healthcare services driven by an aging population and advancements in medical technology, which support growth for top holdings like UnitedHealth and CVS Health. However, potential risks include regulatory changes in the U.S. healthcare system or economic downturns that could impact healthcare spending and insurance profitability. Investors should also consider how broader market conditions, like interest rate changes, might affect the financial performance of healthcare providers and insurers.

IHF Top 10 Holdings

The iShares U.S. Healthcare Providers ETF (IHF) is heavily concentrated in the U.S. healthcare sector, with major players like UnitedHealth and CVS Health leading the charge. UnitedHealth, the fund’s largest holding, has been losing steam recently due to challenges with medical costs and membership declines, while CVS Health has been a steady performer, supported by strong earnings and positive technical trends. HCA Healthcare stands out as a rising star, benefiting from robust financial results and upward guidance. However, laggards like Humana and Veeva Systems, both facing bearish momentum and profitability concerns, are holding back the fund’s performance. Overall, the ETF’s focus on healthcare providers offers a mix of growth opportunities and near-term headwinds, reflecting the dynamic nature of the sector.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
UNH	UnitedHealth	20.64%	$155.89M	$289.01B	-47.34%	67 Neutral
CVS	CVS Health	12.57%	$94.94M	$98.89B	29.66%	74 Outperform
CI	Cigna	9.21%	$69.57M	$72.52B	-18.48%	72 Outperform
HCA	HCA Healthcare	5.70%	$43.05M	$114.33B	53.87%	76 Outperform
ELV	Elevance Health	4.82%	$36.41M	$73.25B	-19.14%	68 Neutral
VEEV	Veeva Systems	3.85%	$29.09M	$38.75B	3.87%	66 Neutral
HUM	Humana	3.76%	$28.39M	$27.57B	-24.65%	63 Neutral
LH	Labcorp Holdings	3.63%	$27.43M	$21.99B	9.95%	68 Neutral
DGX	Quest Diagnostics	3.51%	$26.51M	$21.20B	17.32%	79 Outperform
THC	Tenet Healthcare	3.12%	$23.59M	$18.86B	49.75%	72 Outperform

IHF Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

49.24

Negative

100DMA

47.05

Positive

200DMA

48.43

Negative

Market Momentum

MACD

-0.55

Positive

RSI

47.84

Neutral

STOCH

32.80

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IHF, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 48.31, equal to the 50-day MA of 49.24, and equal to the 200-day MA of 48.43, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 32.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHF.

IHF Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IHF	―	―	$731.10M	0.38%	69 Neutral
FXH	―	―	$896.18M	0.62%	69 Neutral
RSPH	―	―	$725.16M	0.40%	71 Outperform
IHE	―	―	$684.12M	0.38%	71 Outperform
PJP	―	―	$298.51M	0.57%	69 Neutral
PINK	―	―	$293.81M	0.51%	65 Neutral

Performance Comparison

IHF

iShares U.S. Healthcare Providers ETF

48.21

-5.66

-10.51%

FXH

First Trust Health Care AlphaDEX Fund

―

RSPH

Invesco S&P 500 Equal Weight Health Care ETF

―

IHE

iShares U.S. Pharmaceuticals ETF

―

PJP

Invesco Dynamic Pharmaceuticals ETF

―

PINK

Simplify Health Care ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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