iShares U.S. Medical Devices ETF (IHI) Covered Calls

The iShares U.S. Medical Devices ETF (IHI) is an exchange-traded fund that tracks the Dow Jones U.S. Select Medical Equipment Index. The fund provides targeted exposure to U.S. companies involved in the manufacturing and distribution of medical devices, including surgical instruments, diagnostic equipment, prosthetics, and pacemakers. It serves as a specialized vehicle for investors seeking to capitalize on innovation and demographic trends driving global demand for medical technology.

You can sell covered calls on iShares U.S. Medical Devices ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for IHI (prices last updated Wed 4:16 PM ET):

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The iShares U.S. Medical Devices ETF (IHI) is a passively managed fund designed to provide focused access to the medical equipment segment of the healthcare industry. By tracking a specific benchmark, it offers a diversified way to gain exposure to leading U.S. firms that drive technological advancements in patient care.

Core Business and Objectives

IHI seeks to match the performance of its underlying index through a representative sampling strategy. The portfolio is heavily concentrated in the healthcare sector, specifically focusing on companies that research, develop, and produce non-disposable medical equipment and advanced diagnostic tools. Because it concentrates on a single niche within healthcare, the fund provides higher sector sensitivity than broad-market healthcare ETFs.

The fund's allocation is dominated by large-cap medical technology companies that maintain strong market positions and consistent research-and-development investment. This focus allows the fund to capture the performance of companies that are often the primary suppliers to hospitals, surgical centers, and diagnostic laboratories.

Competitive Landscape

In the specialized medical device ETF space, IHI competes with funds that offer varying levels of concentration and index methodologies. A notable peer is the SPDR S&P Health Care Equipment ETF (XHE), which provides similar exposure but with a different weighting structure. Another competitor is the First Trust Indxx Medical Devices ETF (MDEV), which offers a different approach to capturing growth in the medical technology market.

Investors often look at IHI alongside broader healthcare sector funds like the Health Care Select Sector SPDR Fund (XLV), though XLV includes pharmaceuticals and biotechnology companies that are not present in IHI’s specialized portfolio. IHI distinguishes itself through its long-standing track record and its deep concentration in the medical equipment niche.

Strategic Outlook and Market Role

The fund’s performance is primarily driven by healthcare spending, clinical innovation, and the aging global population, which fuels demand for diagnostic and procedural equipment. As medical technology continues to evolve toward more minimally invasive procedures and digital health integration, IHI remains a key instrument for institutional and retail investors seeking to track the technological frontier of the medical field.

The long-term outlook for IHI is linked to the continued growth of the medical device industry. While the fund is subject to risks common to sector-specific investing—such as regulatory changes, reimbursement policies, and pricing pressures—its concentrated focus on highly engineered medical products positions it as a staple for thematic healthcare portfolios.

Want more examples? IHF Covered Calls | IHRT Covered Calls