10 Best Pharmaceutical ETFs to Buy in 2025

The iShares U.S. Pharmaceuticals ETF (IHE) seeks to track the investment results of an index composed of U.S. equities in the pharmaceuticals sector. This ETF provides targeted exposure to companies engaged in the research, development, manufacture, and sale of pharmaceutical products. The fund includes well-known pharmaceutical giants as well as smaller biotech firms, offering investors a diversified approach to the pharmaceuticals industry. IHE is designed for those looking to capitalize on the growth potential of the healthcare sector, particularly in drug development and innovation. The ETF is passively managed and aims to replicate the performance of the Dow Jones U.S. Select Pharmaceuticals Index, which is market-cap weighted.

The VanEck Vectors Pharmaceutical ETF (PPH) is an exchange-traded fund that provides targeted exposure to companies in the pharmaceutical industry. The fund seeks to replicate the performance of the MVIS US Listed Pharmaceutical 25 Index, which tracks the overall performance of U.S.-listed companies involved in pharmaceuticals, including major drug manufacturers, biotechnology firms, and related businesses. PPH offers investors a way to gain diversified exposure to the pharmaceutical sector, which is known for its innovation, strong cash flows, and defensive characteristics during market downturns. The ETF is designed for investors seeking long-term growth potential through investments in leading pharmaceutical companies that are involved in drug development, production, and distribution.

The Invesco Dynamic Pharmaceuticals ETF (PJP) is an exchange-traded fund that seeks to track the Dynamic Pharmaceutical Intellidex Index. This index is designed to provide capital appreciation by evaluating pharmaceutical companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. PJP offers exposure to U.S. pharmaceutical companies, including large-cap, mid-cap, and small-cap stocks, providing investors with diversified access to the pharmaceutical sector. The fund is rebalanced quarterly to ensure it remains aligned with its investment objectives.

The SPDR S&P Pharmaceuticals ETF (XPH) is an exchange-traded fund that seeks to provide investment results that correspond generally to the price and yield performance of the S&P Pharmaceuticals Select Industry Index. This ETF offers investors exposure to a focused segment of the U.S. pharmaceuticals industry, including companies involved in the research, development, manufacturing, and marketing of pharmaceuticals and biotechnology. The fund is designed to reflect the performance of the pharmaceutical sector, providing a way to invest in a basket of stocks within this niche market. XPH is rebalanced quarterly to ensure it remains aligned with its benchmark index.

The First Trust Nasdaq Pharmaceuticals ETF (FTXH) is an exchange-traded fund that seeks to track the performance of the Nasdaq US Smart Pharmaceuticals Index. This index is designed to provide exposure to U.S. companies within the pharmaceuticals sector, including those involved in the development, production, and marketing of pharmaceutical products. FTXH employs a smart-beta approach, selecting and weighting stocks based on factors such as liquidity, volatility, and value, rather than simply market capitalization. The fund offers investors targeted exposure to the pharmaceuticals industry, which can be a key sector for growth and innovation in the healthcare space. FTXH is suitable for investors looking to diversify their portfolios with pharmaceutical stocks while potentially benefiting from the sector's long-term growth prospects.