However, that deal and others within the health care sector have recently come under scrutiny as the U.S. Treasury Department looks to crack down on U.S. firms acquiring rivals with foreign domiciles so that they can avoid paying U.S. taxes. More recently, inversions have occurred after large U.S. companies merged with smaller foreign firms. The U.S. company would reincorporate in a tax-friendlier country, like Ireland, while maintaining much of their core operations in the U.S. [Inversion Crackdown Affects Health Care ETFs]

Becton Dickinson’s acquisition of CareFusion does not raise the specter of inversion scrutiny because the former is based in New Jersey while the latter calls San Diego home. IHI has $744 million in assets under management, over $227 million of which have come into the ETF this year.

iShares U.S. Medical Devices ETF

ETF Trends editorial team contributed to this article.