Which Pharmaceuticals ETF Is the Better Buy: iShares’ IHE or Invesco’s PJP?
The iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) provides a lower-cost, more diversified entry into the drug manufacturing sector than the Invesco Pharmaceuticals ETF (NYSEMKT:PJP) , which utilizes a more concentrated selection process. Both the iShares U.S. Pharmaceuticals ETF and the Invesco Pharmaceuticals ETF provide targeted exposure to the domestic pharmaceutical sector. While iShares utilizes a broad market-cap-weighted strategy, Invesco employs a dynamic selection methodology that filters for value and growth characteristics among 30 stocks, resulting in distinct risk profiles within the same industry. Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. Continue reading