Related: 6 Top Healthcare ETFs Rally as Trump Vows End to ‘Global Freeloading’
As companies raise prices, they will come up against the administration’s goal of providing reasonable healthcare prices. However, the drug industry and the administration won’t likely agree on what constitutes as reasonable, so investors shouldn’t be surprised that the two could butt heads.
The potential for greater political risk could dampen the outlook on pharma-related ETFs, such as PowerShares Dynamic Pharmaceuticals Portfolio (NYSEArca: PJP), SPDR Pharmaceuticals ETF (NYSEArca: XPH), iShares U.S. Pharmaceuticals ETF (NYSEArca: IHE), VanEck Vectors Pharmaceutical ETF (NYSEArca: PPH) and VanEck Vectors Generic Drugs ETF (NasdaqGM: GNRX).
For more information on the pharma sector, visit our pharmaceuticals category.