IHEETF

The First Trust NASDAQ Pharmaceuticals ETF (FTXH) is a smart beta ETF with $1.07 billion in assets that tracks the Nasdaq US Smart Pharmaceuticals Index. With a 0.60% expense ratio and 51 holdings, it has delivered strong performance of 25.84% year-to-date and 43.75% over the past year as of October 15, 2026. However, investors should consider alternative pharmaceutical ETFs like VanEck Pharmaceutical ETF (PPH) and iShares U.S. Pharmaceuticals ETF (IHE), which offer lower expense ratios.

The State Street SPDR S&P Pharmaceuticals ETF (XPH) is a passively managed fund offering broad exposure to the pharmaceutical sector with low costs (0.35% expense ratio) and solid year-to-date performance of 12.61%. However, the Healthcare-Pharma sector ranks 11th out of 16 Zacks sectors, and the ETF carries a 'Hold' rating with high risk (beta of 0.61, standard deviation of 20.68%). Investors may also consider alternative pharma ETFs like FTXH and IHE.

The VanEck Pharmaceutical ETF (PPH) offers low-cost exposure to the healthcare-pharma sector with a 0.36% expense ratio and $1.01 billion in assets. The fund tracks the MVIS US Listed Pharmaceutical 25 Index and holds major pharmaceutical companies like Eli Lilly, Merck, and Novartis. With a Zacks ETF Rank of 3 (Hold), year-to-date gains of 6.51%, and a medium-risk profile, PPH is presented as a reasonable option for investors seeking diversified pharma exposure, though alternative ETFs like FTXH and IHE are also available.