This ETF offers exposure to health care providers, a narrow sub-sector of the health care industry that may be subject to unique regulatory risks. Given the extremely narrow focus of this fund, IHF probably doesn't belong in a long-term portfolio in any major amount, though this fund can be useful for those investors looking to implement a tactical tilt towards health care providers or perhaps as part of a long/short pairs trade. Not surprisingly, IHF is somewhat limited in terms of individual security diversification; the underlying portfolio is not extremely deep, and a few of the bigger names in the basket receive significant allocations in this fund. IHF is probably to granular for the vast majority of investors out there, but for those with a very specific objective it can be a useful tool for fine tuning portfolio exposure. Those looking for broader health care representation will prefer funds such as VHT or XLV; the equal-weighted RYH is also an interesting option. There are a number of other hyper-targeted options available under the health care umbrella, including medical devices (IHI), pharmaceuticals (IHE), and health care equipment (XHE).