Which Healthcare ETF Is the Better Buy: Simplify’s Active PINK or VanEck’s Pharma-Focused PPH?
Key Points
Simplify Health Care ETF has a higher expense ratio and a lower dividend yield than VanEck Pharmaceutical ETF.
VanEck Pharmaceutical ETF maintains a more concentrated portfolio focused exclusively on global pharmaceutical giants.
Simplify Health Care ETF utilizes active management and a pro-bono structure to donate net profits to breast cancer research.
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The Simplify Health Care ETF (NYSEMKT:PINK) provides active management and broad sector exposure, while the VanEck Pharmaceutical ETF (NASDAQ:PPH) offers a lower-cost, concentrated index of global pharmaceutical leaders.
Investors seeking healthcare exposure must choose between concentrated niches and broad innovation. Comparing the Simplify Health Care ETF with the VanEck Pharmaceutical ETF highlights two distinct strategies: one focuses on cash-flow-rich pharmaceutical giants, while the other seeks growth through active management and a unique pro-bono charitable structure.
Snapshot (cost & size)
| Metric | PPH | PINK |
|---|---|---|
| Issuer | VanEck | Simplify |
| Share price | $107.61 (as of 2026-10-05) | $38.42 (as of 2026-10-05) |
| Expense ratio | 0.36% | 0.51% |
| 1-yr return (as of 2026-10-05) | 16.8% | 18.4% |
| Dividend yield | 1.9% | 0.8% |
| Beta | 0.45 | 0.73 |
| AUM | $1.0 billion | $0.3 billion |
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-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The VanEck Pharmaceutical ETF is the more affordable option with a 0.36% expense ratio compared to 0.51% for the Simplify Health Care ETF. Additionally, the VanEck Pharmaceutical ETF offers a higher payout with a 1.9% yield.
Performance & risk comparison
| Metric | PPH | PINK |
|---|---|---|
| Max drawdown (4 yr) | (18.1%) | (18.7%) |
| Growth of $1,000 over 4 years (total return) | $1,700 | $1,597 |
Over the past year, both funds have shown resilience. The Simplify Health Care ETF slightly led the VanEck Pharmaceutical ETF in total return, but it came with significantly higher price volatility, as shown by its 0.73 beta. The VanEck Pharmaceutical ETF, launched in 2011, has provided a more established track record for long-term investors.
What's inside
The Simplify Health Care ETF focuses on innovative healthcare companies across biotechnology and medical technology. Its largest positions include Eli Lilly (NYSE:LLY) at 7.91%, Humana (NYSE:HUM) at 7.58%, and Arcutis Biotherapeutics (NASDAQ:ARQT) at 6.26%. This actively managed fund holds 58 positions and carries a currency hedge quirk, with 89% of assets in healthcare and minor weights in consumer cyclicals and industrials. It was launched in 2021. Simplify Health Care ETF has paid $0.3 per share over the trailing 12 months, which on its recent ~$38.4 share price works out to a 0.8% yield. A unique feature is its mission to donate net profits to the Susan G. Komen foundation.
The VanEck Pharmaceutical ETF tracks an index of the 25 most liquid pharmaceutical companies. Its largest positions include Eli Lilly at 20.69%, Merck at 13.39%, and Novo Nordisk (NYSE:NVO) at 5.58%. It maintains a concentrated portfolio of 26 holdings with a 100% sector weight in healthcare. The fund was launched in 2011 and has no special investment quirks. VanEck Pharmaceutical ETF has paid $2.1 per share over the trailing 12 months, which on its recent ~$107.6 share price works out to a 1.9% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The healthcare sector is generating more investment headlines than it has in years, driven by record dealmaking, GLP-1 drug innovation, and a wave of biotech acquisitions that shows no sign of slowing. Choosing where to position yourself within that story matters more than it has in years.
PPH makes a case that is hard to argue with on the fundamentals. Established global pharmaceutical companies like Eli Lilly, Merck, and Novo Nordisk have proven business models, meaningful dividends, and decades of navigating drug cycles. PPH delivers exposure to that group passively and at a lower fee than PINK.
PINK counters with something PPH cannot offer: active management that can move across the healthcare landscape, plus a fund structure that donates its entire management fee to cancer research. That combination of flexibility and purpose has attracted a loyal and growing investor base.
For most long-term investors, PPH's lower cost, higher yield, and longer track record give it the edge today. PINK is the more meaningful choice for those who want active oversight and the rare satisfaction of knowing their management fee is funding cancer research.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly, Merck, and Novo Nordisk. The Motley Fool has a disclosure policy.
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