The pharmaceutical industry has grown in leaps and bounds over the past few years. With new breakthroughs happening in the world of medical research and development, it’s easy to see why. As the industry continues to expand, investors should take note of the five biggest pharmaceutical ETFs in 2023.
The iShares Nasdaq Biotechnology ETF (IBB) is one of the biggest pharmaceutical ETFs out there. The fund seeks to track the performance of the NASDAQ Biotechnology index, which is comprised of biotech and pharmaceutical companies that are involved in the research, development, and commercialization of products that the sector produces.
The SPDR S&P Pharmaceuticals ETF (XPH) from State Street Global Advisors is another big-name fund that focuses on pharmaceutical investments. The fund follows the S&P Pharmaceuticals Select Industry Index, which contains approximately 30 pharmaceutical and healthcare companies operating in the United States and worldwide.
The ARK Genomic Revolution Multi-Sector ETF (ARKG) is another intriguing ETF that focuses on the biotechnology and medical devices sector. This fund seeks to track the performance of the ARK Genomic Revolution Multi-Sector Index, which is comprised of biotech, medical device, and pharmaceutical companies that produce the products that are transforming health care.
The First Trust NYSE Arca Pharmaceutical Index Fund (PJP) also looks to make investments in companies involved in the development, production, and distribution of drug products. Specifically, it follows the NYSE Arca Pharmaceutical Index, which consists of approximately 35 pharmaceutical companies that are involved in drug research and development.
Finally, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a great way for investors to gain exposure to pharmaceutical companies. This fund tracks the NYSE Arca Pharmaceutical Index which contains approximately 35 pharmaceutical companies that are involved in drug research and development.
These five ETFs have the potential to offer investors access to a great sector. As the pharmaceutical industry continues to innovate and expand, these funds present great opportunities to increase your portfolio and offer a chance to diversify your investments. With a track record of success, these ETFs should be taken into consideration when making an investment in 2023.