5 Biggest Pharmaceutical ETFs in 2024

Total assets under management: US$684.73 million

Established in late 2011, the VanEck Pharmaceutical ETF tracks the MVIS US Listed Pharmaceutical 25 Index. It has the capacity to provide big returns, even though there are some risks attached to the ETF. An analyst report indicates that investors looking for "tactical exposure" to the pharma sector might consider this ETF as an investment option.

The ETF has 26 holdings, with the top five being Eli Lilly with a weight of 12.32 percent, Novo Nordisk (NYSE:NVO) at 8.15 percent, Johnson & Johnson at 6.71 percent, AbbVie (NYSE:ABBV) at 6.67 percent and Bristol-Myers Squibb (NYSE:BMY) at 5.33 percent.

Total assets under management: US$624.31 million

Created on May 5, 2006, this iShares ETF tracks some of the top US pharma companies. In total, the iShares US Pharmaceuticals ETF has 40 holdings, with the vast majority being large-cap stocks.

Of its holdings, Johnson & Johnson (NYSE:JNJ) and Eli Lilly (NYSE:LLY) are by far the largest portions in its portfolio, coming in at weightings of 22.27 percent and 20.3 percent, respectively. The next highest are Bristol-Myers Squibb at 5.29 percent, Viatris (NASDAQ:VTRS) at 4.68 percent and Pfizer (NYSE:PFE) at 4.34 percent.

Total assets under management: US$281.23 million

The Invesco Pharmaceuticals ETF is primarily focused on providing exposure to US-based pharma companies. An analyst report states that this ETF chooses individual securities based on certain investment criteria, namely stock valuation and risk factors. Invesco changed the fund's name from the Invesco Dynamic Pharmaceuticals ETF in August 2023.

This ETF was started on June 23, 2005, and currently tracks 27 companies. Its top holdings are Abbott Laboratories (NYSE:ABT) with a weight of 5.86 percent, AbbVie at 6.67 percent, Johnson & Johnson at 5.47 percent, Amgen (NASDAQ:AMGN) at 5.46 percent and Pfizer at 5.43 percent.

Total assets under management: US$154.77 million

The SPDR S&P Pharmaceuticals ETF came into the market on June 19, 2006, and represents the pharmaceutical sub-industry sector of the S&P Total Markets Index. An analyst report for the ETF suggests that due to its narrow focus — which includes pharma giants that post "big returns" during times of consolidation — it should not be considered for a long-term portfolio.

This pharma ETF tracks 46 holdings, with relatively close weighting among its holdings. XPH's top five holdings are Corcept Therapeutics (NASDAQ:CORT) with a weight of 4.32 percent, Longboard Pharmaceuticals (NASDAQ:LBHP) at 4.13 percent, Intra-Cellular Therapies (NASDAQ:ITCI) at 3.97 percent, Bristol-Meyers Squibb at 3.82 percent and Edgewise Therapeutics (NASDAQ:EWTX) at 3.55 percent.

Total assets under management: US$43.48 million

The KraneShares MSCI All China Health Care Index ETF was launched in February 2018 and tracks an index of large- and mid-cap Chinese stocks in the healthcare sector, all weighted by market capitalization. According to an analyst report, the fund provides investors with "exposure to a relatively small slice of the Chinese economy."

The ETF tracks 55 holdings, and its top five are Shenzhen Mindray Bio-Medical Electronics (SZSE:300760) at 8.18 percent, Jiangsu Hengrui Medicine (SHA:600276) at 7.71 percent, BeiGene (OTC Pink:BEIGF,HKEX:6160) at 6.62 percent, Wuxi Biologics (OTC Pink:WXIBF,HKEX:2269) at 4.47 percent and Zhangzhou Pientzehuang Pharmaceutical (SHA:600436) at 3.63 percent.