Top Pharmaceutical ETFs

- September 25th, 2018

Experienced and novice investors alike may want to consider pharmaceutical ETFs as a way to stay informed about what companies are leading the industry.

Experienced and novice investors alike may want to consider pharmaceutical ETFs as a way to stay informed about what companies are leading the industry.

Similar to other industries, pharmaceutical ETFs are the keys to an investor’s opportunity to a set of assets, including commons stocks and commodities which trade at similar values over the course of a day.

For the novice investors, ETFs are comprised of numerous companies in aspecified industry. For most of the ETFs on this list, each is comprised of roughly 40 holdings. Pharmaceutical ETFs give investors a broad-view of what these companies have to offer and where they stand in the market.

To help investors become more aware of what some of their options are when looking at investing in the pharmaceutical sector, the Investing News Network (INN) is looking at the five top ETFs (barring any leveraged ETFs) in the space, according to a list on the ETF Database. Included on the list are:

  • Invesco Dynamic Pharmaceuticals ETF (NYSEARCA:PJP)
  • iShares US Pharmaceuticals ETF (NYSEARCA:IHE)
  • SPDR S&P Pharmaceuticals ETF (NYSEARCA:XPH)
  • VanEck Vectors Pharmaceutical ETF (NASDAQ:PPH)
  • KraneShares MSCI All China Health Care Index ETF (NYSEARCA:KURE)

The funds are arranged by the value of their assets. Here’s a closer look at those pharmaceutical ETFs.

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Invesco Dynamic Pharmaceuticals ETF

First on our pharmaceutical ETFs list is PJP, which usually invests at least 90 percent of its total assets in common stocks that the ETF is formed from. As its name pertains, the ETF was derived from pharmaceutical company that engages, distributes, develops and researches drugs. In term of the fund’s performance, Invesco’s report on June 30, 2018 showed the ETF has increased in market price over 12 percent in the last five years.

The top holdings on the fund include Abbott Laboratories (NYSE:ABT), Pfizer (NYSE:PFE), Johnson and Johnson (NYSE:JNJ), Amgen (NASDAQ:AMGN) and Merck (NYSE:MRK), all weighing over five percent each.

iShares US Pharmaceuticals ETF

The IHE is focused on giving investors exposure to some of the top US companies which manufacture prescription and over-the-counter drugs. Close to PJP, this ETF has had an over  10 percent market price increase over the past five years as of June 30, 2018.

IHE’s funds are top heavy with Johnson & Johnson over 10 percent, Pfizer over nine percent, Merck just under eight percent, Bristol-Myers Squibb (NYSE:BMY) and Eli Lilly (NYSE:LLY) both just over six percent.

SPDR S&P Pharmaceuticals ETF

Middle of our top Pharmaceutical ETFs is XPH. An analyst report on ETF Database recommends against this fund as a long-term portfolio option, but it could be a good pharmaceutical fund option as holdings are equal-weighted.

With all top holdings weighted around 4.40 percent, top of the list is Nektar Therapeutics (NASDAQ:NKTR) following Pfizer, Mylan (NASDAQ:MYL), Bristol-Myers Squibb and Merck.

VanEck Vectors Pharmaceutical ETF

Established in 2011, PPH, similar to other on this list is hoping to give investors the best set of pharmaceutical companies to track the performance of the companies in the industry. This fund is mainly focused in the US but has over 11 percent of its net assets in the UK and over five in France and Switzerland, among other countries.

The top companies in this funds holdings are Pfizer, GlaxoSmithKline (NYSE:GSK), Bristol-Myers Squibb, Merck and Novartis (NYSE:NVS) all weighted around five percent.

KraneShares MSCI All China Health Care Index ETF

Final and newest to our list of top Pharmaceutical ETF funds is KURE, representing a whole other market of pharmaceutical companies based in China. According to KraneShare, China has the fastest growing healthcare market in the world. Thanks to this fund, investors get exposure to these Chinese companies.

Another top-heavy weighted ETF, KURE’s holdings top five holdings are: Jiangsu Hengrui Medicine (SHA:600276), CSPC Pharmaceutical Group (HKG:1093), Sino Biopharmaceutical (HKG:1177), SinoPharm Group (HKG:1099) and Wuxi Biologics Cayman (HKG:2269).

This is an updated version of an article originally published on the Investing News Network in 2016.

Don’t forget to follow us @INN_LifeScience  for real-time news updates.

Securities Disclosure: I, Gabrielle Lakusta, hold no investment interest in any of the companies mentioned.

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