The PowerShares Dynamic Pharmaceuticals Portfolio (NYSEArca: PJP), a smart beta pharmaceuticals ETF, is higher by 2.6% on the back of a combined weight of nearly 7% to Mylan and Perrigo. PJP tracks the Dynamic Pharmaceutical Intellidex Index which evaluates companies for inclusion based on “price momentum, earnings momentum, quality, management action, and value,” according to PowerShares.

The ETF recently got a lift from its weight to Salix Pharmaceuticals (NasdaqGS: SLXP), for which a short bidding war occurred. [Healthcare ETFs see big Asset Growth]

At least one international ETF is enjoying news of a Perrigo takeover. The Market Vectors Israel ETF (NYSEArca: ISRA) is higher by 3.8% today on volume that is nearly double the daily average thanks to a 12.1% weight to Perrigo. No ETF has a larger weight to Perrigo than ISRA and the stock is the ETF’s second-largest holding behind a 13% weight to generic drug giant Teva Pharmaceuticals (NasdaqGS: TEVA).

ISRA’s price action on the heels of the Mylan/Perrigo news underscores the importance of investors studying the holdings of two similar ETFs before deciding which one to buy. The iShares MSCI Israel Capped ETF (NYSEArca: EIS) is up just half a percent today. That rival to ISRA does not hold shares of Perrigo. [Healthcare Exposure Lifts Some International ETFs]

iShares U.S. Pharmaceuticals ETF