Key Points

Invesco Pharmaceuticals ETF shows a markedly lower five-year maximum drawdown and reduced volatility profile compared with State Street SPDR S&P Biotech ETF
State Street SPDR S&P Biotech ETF delivers broader diversification through 151 holdings versus the 30 positions held by Invesco Pharmaceuticals ETF
Invesco Pharmaceuticals ETF generated a higher trailing-12-month dividend per share and stronger yield while preserving a more defensive beta
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The Invesco Pharmaceuticals ETF (NYSEMKT:PJP) supplies focused access to established profitable drug manufacturers with reduced volatility while the State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) supplies wider higher-beta access to earlier-stage biotechnology firms.

Investors selecting between these healthcare vehicles weigh the relative steadiness of mature pharmaceutical leaders against the elevated growth prospects of clinical-stage biotechnology firms. Although both concentrate on the medical field their distinct strategies produce markedly different risk-return characteristics expense levels and concentration levels for long-term investors.

Snapshot (cost & size)

Metric	XBI	PJP
Issuer	SPDR	Invesco
Expense ratio	0.35%	0.57%
1-yr return (as of June 3 2026)	58.30%	34.70%
Dividend yield	0.30%	1.00%
Beta	0.85	0.47
AUM	$8.1 billion	$329.6 million

Beta measures price volatility relative to the S&P 500 beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Invesco fund carries a higher expense ratio than the SPDR ETF at 0.57 percent versus 0.35 percent. This 0.22 percentage point gap may be balanced for certain investors by the higher 1.00 percent trailing-12-month distribution yield provided by the pharmaceutical-oriented fund.

Performance & risk comparison

Metric	XBI	PJP
Max drawdown (5 yr)	(54.70%)	(17.50%)
Growth of $1 000 over 5 years (total return)	$1 030.00	$1 444.00

What's inside

The Invesco Pharmaceuticals ETF (PJP) concentrates solely on the healthcare sector with 30 holdings. Its top positions feature Corcept Therapeutics (NASDAQ:CORT) at 5.67 percent Eli Lilly & Co (NYSE:LLY) at 5.36 percent and AbbVie (NYSE:ABBV) at 4.94 percent. Introduced in 2005 the fund maintains a trailing-12-month dividend of $1.06 per share. Its selection criteria assess firms on investment merit factors including price and earnings momentum together with quality instead of market capitalization alone and the holdings are rebalanced each quarter.

By comparison the State Street SPDR S&P Biotech ETF (XBI) reaches a wider audience with 151 holdings. It likewise directs 100 percent toward healthcare yet tilts specifically into the more variable biotechnology sub-industry. Its leading positions comprise Revolution Medicines (NASDAQ:RVMD) at 1.83 percent Twist Bioscience Corp (NASDAQ:TWST) at 1.80 percent and Alkermes (NASDAQ:ALKS) at 1.79 percent. Launched in 2006 it has distributed $0.44 per share across the trailing 12 months. Its modified equal-weighted index permits substantial exposure to small-cap names that may be absent from more concentrated pharmaceutical portfolios.

Which looks like the better buy

The Invesco Pharmaceuticals ETF (PJP) and the State Street SPDR S&P Biotech ETF (XBI) both represent healthcare-oriented exchange-traded funds. Nevertheless they vary in meaningful respects. Here is how they stack up against each other.

First consider PJP. This vehicle supplies exposure to the pharmaceuticals sub-sector. Leading holdings encompass giants such as Pfizer (NYSE:PFE) Johnson & Johnson (NYSE:JNJ) and Merck & Co (NYSE:MRK). Performance-wise the fund has produced results similar yet modestly superior to the broader market. Across the past 21 years PJP has generated a total return of 851 percent corresponding to a compound annual growth rate of 11.4 percent. That edges past the S&P 500 which posted a total return of 827 percent over the identical span with a CAGR of 11.2 percent. Still PJP carries an expense ratio of 0.57 percent that exceeds many peer ETFs. Moreover its 1.0 percent dividend yield may not attract numerous income-focused investors.

Next examine XBI. This fund centers on the biotech sub-sector a specialized field populated by firms whose primary offerings frequently remain promising yet unproven. The biotech arena is famously variable since company outlooks can shift sharply on clinical trial outcomes and regulatory decisions. Over the past 20 years the fund has achieved a total return roughly aligned with the S&P 500. XBI has risen by 757 percent with a CAGR of 11.2 percent. Meanwhile the S&P 500 recorded a total return of 769 percent with a CAGR of 11.2 percent. The fund maintains an expense ratio of 0.35 percent and a dividend yield of 0.3 percent.

In summary PJP will attract investors seeking exposure to established pharmaceutical companies. Yet its elevated fees may deter cost-sensitive investors. XBI on the other hand can function as a strong alternative for investors pursuing diversified exposure to the variable biotech sub-sector.