Pharmaceutical ETFs invest in stocks of companies that are involved in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.
With Johnson and Johnson continuing to thrive despite claims and a lawsuit that it has singlehandedly spurred America’s opioid crisis, pharma stocks like Johnson and Johnson and Pfizer and their associated ETFs may be a good bet for investors. Despite the pending lawsuit and controversy for example, JNJ has remained stalwart, trading at roughly $141 a share, a stone’s throw from its all-time high of $146.87. Meanwhile, for the past 5 years Pfiser has shown growth observed at 1.00%, and for the next five years the analysts that follow this company are expecting its growth at 5.61%
For investors looking into the sector, here are 4 Pharma ETFs to consider:
PJP seeks to track the investment results of the Dynamic Pharmaceutical IntellidexSM Index. The underlying intellidex was composed of common stocks of 23 U.S. pharmaceuticals companies. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. PJP is up 4.62 percent year-to-date.
IHE seeks to track the investment results of the Dow Jones U.S. Select Pharmaceuticals Index. The underlying index measures the performance of the pharmaceuticals sector of the U.S. equity market and includes pharmaceutical companies, such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. IHE is up 9.78 percent YTD.
XPH seeks to provide investment results that correspond generally to the total return performance of an index derived from the pharmaceuticals segment of a U.S. total market composite index, which represents the pharmaceuticals segment of the S&P Total Market Index. In seeking to track the performance of the S&P Pharmaceuticals Select Industry Index, the fund employs a sampling strategy. XPH is up 14.17 percent YTD.
For traders looking to leverage big pharma, they can look to a fund like PILL to get the added exposure. PILL seeks 300 percent of the daily performance of the Dynamic Pharmaceutical Intellidex Index, which consists of common shares of companies that are principally engaged in research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.
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