Experienced and novice investors alike may want to consider pharmaceutical exchange-traded funds (ETFs) as a way to gain exposure to the top pharma companies. Like all ETFs, pharmaceutical ETFs are a good option for those who want to trade a set of assets in the pharmaceutical industry instead of focusing solely on individual pharmaceutical stocks.
The main advantage of a pharma ETF is the fact that it can provide exposure to an overarching sector, but still trades like a stock. Pharma ETFs also offer less market volatility and lower fees and expenses.
Many of these funds have diverse holdings across some of the most important sectors in the pharmaceutical industry, including pain therapeutics, oncology, vaccines and biotechnology. Data was gathered on May 28, 2024.
Total assets under management: US$677.53 million
Created on May 5, 2006, this iShares ETF tracks some of the top US pharma companies. In total, the iShares US Pharmaceuticals ETF has 36 holdings, with the vast majority being large-cap stocks.
Total assets under management: US$571.28 million
Total assets under management: US$268.35 million
Total assets under management: US$193.9 million
Total assets under management: US$46.82 million
The KraneShares MSCI All China Health Care Index ETF was launched in February 2018 and tracks an index of large- and mid-cap Chinese stocks in the healthcare sector, all weighted by market capitalization.
This is an updated version of an article originally published by the Investing News Network in 2016.
Securities Disclosure: I, Melissa Pistilli, hold no investment interest in any of the companies mentioned in this article.
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