The VanEck Pharmaceutical ETF offers a way to invest in the pharma sector with low costs and diversified exposure
Investors love these kinds of ETFs because they’re usually low-cost and transparent. Plus, they’re flexible and tax-efficient, making them great for long-term investing. The PPH ETF is part of the Healthcare – Pharma sector, which is currently ranked at the top of the Zacks Industry classification.
The fund has over $538 million in assets, making it one of the larger ETFs in this space. It aims to match the performance of the MVIS US Listed Pharmaceutical 25 Index, which includes companies involved in pharmaceuticals, from research to sales.
When you’re looking at ETFs, the expense ratio is key. PPH has a low annual operating expense of 0.36%, which is pretty good. It also offers a 12-month trailing dividend yield of 2%.
Before you invest, it’s smart to check out the ETF’s holdings. PPH has major stakes in companies like Eli Lilly, which makes up about 13.39% of its assets, along with Johnson & Johnson and AbbVie. The top 10 holdings account for around 63.77% of the total assets.
As for performance, PPH has seen a slight dip of about -0.79% this year but is up about 2.02% over the last year. It’s traded between $84.25 and $99.43 in the past 52 weeks. With a beta of 0.64, it’s considered a medium-risk option.
If you’re looking for alternatives, there are other ETFs like the Invesco Pharmaceuticals ETF and the iShares U.S. Pharmaceuticals ETF. They have different expense ratios and asset sizes, so it’s worth comparing them.
In short, if you’re interested in the healthcare sector, the VanEck Pharmaceutical ETF could be a solid choice. Just make sure to do your homework and see if it fits your investment goals.
