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Should You Invest in the VanEck Pharmaceutical ETF (PPH)?
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Looking for broad exposure to the Healthcare - Pharma segment of the equity market? You should consider the VanEck Pharmaceutical ETF (PPH - Free Report) , a passively managed exchange traded fund launched on December 20, 2011.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $1.2 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PPH seeks to match the performance of the MVIS US Listed Pharmaceutical 25 Index before fees and expenses.
The MVIS US Listed Pharmaceutical 25 Index tracks the overall performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well a production, marketing and sales of pharmaceuticals.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.36%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.88%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 23.15% of total assets, followed by Novartis Ag (NVS) and Merck & Co Inc (MRK).
The top 10 holdings account for about 73.96% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Pharmaceutical ETF has added roughly 21.33% so far, and was up about 17.56% over the last 12 months (as of 11/27/2025). PPH has traded between $80.28 and $103.21 in this past 52-week period.
The ETF has a beta of 0.53 and standard deviation of 14.26% for the trailing three-year period, making it a medium risk choice in the space. With about 27 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Pharmaceutical ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PPH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Invesco Pharmaceuticals ETF (PJP) tracks Dynamic Pharmaceutical Intellidex Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. Invesco Pharmaceuticals ETF has $311.68 million in assets, iShares U.S. Pharmaceuticals ETF has $723.74 million. PJP has an expense ratio of 0.57%, and IHE charges 0.38%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the VanEck Pharmaceutical ETF (PPH)?
Looking for broad exposure to the Healthcare - Pharma segment of the equity market? You should consider the VanEck Pharmaceutical ETF (PPH - Free Report) , a passively managed exchange traded fund launched on December 20, 2011.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $1.2 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PPH seeks to match the performance of the MVIS US Listed Pharmaceutical 25 Index before fees and expenses.
The MVIS US Listed Pharmaceutical 25 Index tracks the overall performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well a production, marketing and sales of pharmaceuticals.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.36%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.88%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Eli Lilly & Co (LLY) accounts for about 23.15% of total assets, followed by Novartis Ag (NVS) and Merck & Co Inc (MRK).
The top 10 holdings account for about 73.96% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Pharmaceutical ETF has added roughly 21.33% so far, and was up about 17.56% over the last 12 months (as of 11/27/2025). PPH has traded between $80.28 and $103.21 in this past 52-week period.
The ETF has a beta of 0.53 and standard deviation of 14.26% for the trailing three-year period, making it a medium risk choice in the space. With about 27 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Pharmaceutical ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PPH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Invesco Pharmaceuticals ETF (PJP) tracks Dynamic Pharmaceutical Intellidex Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. Invesco Pharmaceuticals ETF has $311.68 million in assets, iShares U.S. Pharmaceuticals ETF has $723.74 million. PJP has an expense ratio of 0.57%, and IHE charges 0.38%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.