The Invesco Pharmaceuticals ETF (PJP +1.38%) offers concentrated exposure to U.S. drugmakers, while the Invesco Nasdaq Biotechnology ETF (IBBQ +0.93%) provides a broader, lower-cost gateway to the biotechnology and pharmaceutical sectors.
Both funds target the healthcare space but employ different approaches. PJP focuses on a tight group of 29 pharmaceutical giants, whereas IBBQ tracks the Nasdaq Biotechnology Index, offering exposure to a much wider array of mid- and large-cap firms.
Snapshot (cost & size)
| Metric | IBBQ | PJP |
|---|---|---|
| Issuer | Invesco | Invesco |
| Share price (as of Aug. 13, 2026) | $33.91 | $124.66 |
| Expense ratio | 0.19% | 0.57% |
| 1-year return (as of Aug. 13, 2026) | 47.4% | 41.1% |
| Dividend yield | 0.8% | 0.9% |
| Beta | 0.61 | 0.45 |
| AUM | $81 million | $512.6 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
IBBQ is the more affordable option for investors with an expense ratio of 0.19%, while PJP charges 0.57%. The ETFs currently offer similar dividend yields.
Performance & risk comparison
| Metric | IBBQ | PJP |
|---|---|---|
| Max drawdown (5 year) | (37.9%) | (17.5%) |
| Growth of $1,000 over 5 years (total return) | $1,338 | $1,598 |
What's inside
PJP concentrates its assets in 29 holdings, focusing entirely on the healthcare sector. Its largest positions include Abbott Laboratories (ABT +2.09%) at 5.78%, Amgen (AMGN +1.41%) at 5.59%, and AbbVie (ABBV +3.43%) at 5.27%. It was launched in 2005. The ETF has paid $1.06 per share over the trailing 12 months.
IBBQ offers broader diversification with 251 holdings, though it also maintains 100% exposure to the healthcare sector. Top holdings include Amgen at 8.7%, Vertex Pharmaceuticals (VRTX +2.45%) at 8.27%, and Gilead Sciences (GILD +3.25%) at 7.12%. It was launched in 2021. The ETF has paid $0.26 per share over the trailing 12 months.
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Which looks like the better buy?
Typically, the first considerations I have when comparing ETFs are their expense ratios and returns. Regarding the latter, investors know past performance is no guarantee of future results. But all else equal, I would prefer to buy the fund that has had better long-term returns, which in this case is PJP. As far as expense ratios go, lower is obviously better. A few basis points here or there isn't going to ruin your life, but when you start seeing pretty wide gaps (0.19% for IBBQ versus 0.57% for PJP), that's where those extra basis points start to add up. (And eat at your portfolio's return.)
But for these two ETFs specifically, the bigger concern I have is their assets under management. IBBQ is super diversified, with 251 holdings, which is something I normally find attractive in an ETF. Conversely, PJP is extremely concentrated in just 29 stocks. But IBBQ is tiny, with barely $80 million in assets under management. I'd be worried about the fund's liquidity if/when I wanted to sell my shares. PJP has over $500 million in AUM.
I don't love PJP's expense ratio, but IBBQ is just so small. I think PJP is the better buy here.
