IHE: A Top-Heavy Pharma ETF That's More Average Than Outstanding

Sakshi Patni profile picture
Sakshi Patni


  • IHE tracks the Dow Jones U.S. Select Pharmaceuticals Total Return Index, which invests solely in U.S. pharmaceutical companies.
  • The fund is top-heavy, investing around 40% in just two companies: Johnson & Johnson and Eli Lilly.
  • IHE could capitalize on the pharmaceutical industry's growth potential in Asia.
  • A high level of competition in the pharma industry from companies not a part of IHE can hurt the fund's returns.
  • I'm currently rating IHE a hold.

Pharmacist organizing the medicine drawer

Marko Geber

Currently, I rate iShares U.S. Pharmaceuticals (NYSEARCA:IHE) a hold. My most significant concerns about this ETF, and the pharmaceutical industry in general, are the high degree of regulation and the time it takes to develop drugs.



Holding Composition


Performance Chart


technical analysis


This article was written by

Sakshi Patni profile picture
Sakshi Patni joined Sungarden Investment Publishing as an Investment Research Intern in January 2023. She completed her undergraduate in 2019 and worked as a Research Associate for 2 years at Morningstar focusing on US Private Equity Markets. Afterward, she started her Master’s in Finance degree with Stevens Institute of Technology in Fall 2021 and has a cumulative GPA of 3.96. Having cleared CFA Level 1 and with a keen interest in the field of Impact Investing, Venture Capital and Corporate Finance, she wants to want to make an impact in this world with her knowledge of Finance and leveraging today's technology. Closely associated with author Modern Income Investor.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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