XPH offers investors a compelling mix of familiar blue chip pharmaceuticals names along with smaller, more nimble firms. Companies in the latter category are the ones more likely to be working on breakthrough treatments or be subject to mergers and acquisitions that can push shares higher. [A Look at Dominant Healthcare ETFs]
The Market Vectors Pharmaceutical ETF (NYSEArca: PPH) is up only modestly today, lethargy that is attributable to that ETF’s 5.3% weight to Valeant. That stock is trading lower in the wake of Endo’s bid for Salix as traders surmise Valeant will either be forced to raise its offer or throw in the towel on Salix.
Endo and Salix combine for 1.6% of PPH’s weight and are two of the ETF’s three smallest holdings.
SPDR Pharmaceuticals ETF
