Pharmaceutical exchange traded funds (ETFs) are poised to come roaring back after a lackluster 2010. Just say…yes?

Last year, pharma underperformed as economic crisis and high joblessness led people to cut back on “non-essentials.” Unfortunately, prescriptions often got lumped into that class. Cost-consciousness will likely persist, but therein lies the opportunity.

Now that we’ve got that out of the way, here are a few of your options for playing this market:

  • iShares Dow Jones U.S. Pharmaceuticals (NYSEArca: IHE)
  • PowerShares Dynamic Pharmaceuticals (NYSEArca: PJP)
  • SPDR S&P Pharmaceuticals (NYSEArca: XPH)
  • iShares MSCI Israel (NYSEArca: EIS): 23% of EIS goes to Teva Pharmaceuticals (NYSE: TEVA), the world’s largest maker of generic drugs.

These aren’t the only plays, however. You can also own biotechnology companies and pharmaceutical purveyors in broad health care ETFs, which can be found in the ETF Analyzer.

Tisha Guerrero contributed to this article.

Post Comment

Do NOT follow this link or you will be banned from the site!