PPH, though, may not hold as many prospective takeover targets as the ETF mainly leans toward established pharmaceutical names, including a 78.1% tilt toward mega-caps and 18.8% toward large-caps. On the other hand, IHE and PJP may include some more potential targets down the line. IHE includes a 11.3% position in micro-caps, 19.2% small-caps and 8.6% mid-caps. PJP holds 3.0% micro-caps and 28.3% small-caps.
Investors looking for even broader exposure to the healthcare space may turn to the Health Care Select Sector SPDR (NYSEArca: XLV), which holds a 39.0% weight toward pharmaceuticals, along with 8.1% PFE and 4.4% AGN.
XLV advanced 5.6% year-to-date and is testing resistance at its long-term, 200-day simple moving average.
For more information on the healthcare sector, visit our healthcare category.
Max Chen contributed to this article.