Looking for broad exposure to the Healthcare - Pharma segment of the equity market? You should consider the Invesco Pharmaceuticals ETF (PJP Quick QuotePJP - Free Report) , a passively managed exchange traded fund launched on June 23, 2005.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $576.53 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index before fees and expenses.

The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.87%.

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.

This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.

Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 5.67% of total assets, followed by Gilead Sciences Inc (GILD) and Pfizer Inc (PFE).

The top 10 holdings account for about 50.07% of total assets under management.

Performance and Risk

Year-to-date, the Invesco Pharmaceuticals ETF return is roughly 24.74% so far, and it's up approximately 34.8% over the last 12 months (as of 11/03/2026). PJP has traded between $96.74 and $131.64 in this past 52-week period.

The ETF has a beta of 0.44 and standard deviation of 16.12% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.

Alternatives

Invesco Pharmaceuticals 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, PJP is a good 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.

First Trust NASDAQ Pharmaceuticals ETF (FTXH) tracks Nasdaq US Smart Pharmaceuticals Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. First Trust NASDAQ Pharmaceuticals ETF has $1.18 billion in assets, iShares U.S. Pharmaceuticals ETF has $1.61 billion. FTXH has an expense ratio of 0.6%, and IHE charges 0.37%.

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.