With the rising popularity of ETFs, many investors are asking what the biggest pharmaceutical ETFs will be in 2023. Pharmaceutical ETFs, otherwise known as Health Care ETFs, are funds that invest in companies that develop, manufacture, and distribute prescription drugs. The pharmaceutical industry has seen a surge in innovation and growth over the last decade, which has made investing in health care stocks appealing to many investors.
When selecting a pharmaceutical ETF, investors should take into consideration the fund’s focus, portfolio makeup, and size. In this article, we will take a look at the 5 biggest pharmaceutical ETFs in 2023.
The SPDR S&P Biotech ETF (XBI) is one of the largest pharmaceutical ETFs on the market. This ETF track the S&P Biotech Select Industry Index and holds securities from around the globe, predominantly U. S. stocks. The fund has $6.5 billion in assets under management and invests in an equally weighted fund of 125 holdings.
The iShares Nasdaq Biotechnology ETF (IBB) is another popular choice for those looking to invest in health care sector. This ETF tracks the Nasdaq Biotechnology Index and holds more than 180 companies from around the world. IBB has a solid $17.3 billion in assets under management and is considered a solid choice for investors seeking lower risks.
Next up on the list is the Vanguard Health Care ETF (VHT). This ETF tracks a broad market-cap-weighted index of U. S. pharmaceutical stocks and includes more than 355 holdings. VHT has grown to $11.7 billion in assets under management and is a great option for those looking for diversification.
The ETFMG Alternative Harvest ETF (MJ) is an up-and-coming ETF specializing in the burgeoning medical and recreational marijuana sector. The ETF has grown to $1.5 billion in assets under management and seeks to provide investors with exposure to businesses involved in the sale and distribution of cannabis products.
The Fidelity MSCI Health Care Index ETF (FHLC) rounds out the top 5 biggest pharmaceutical ETFs in 2023. This ETF tracks the MSCI US Investable Market Health Care 25/50 Index and consists of more than 180 securities. It has steadily grown to hold $3.5 billion in assets and is another great option for those looking for lower risk.
In conclusion, investors have several great options when it comes to investing in pharmaceutical ETFs in 2023. Each of the 5 biggest ETFs mentioned in this article provide investors with a unique focus and are ranked according to their size. Consider all of these funds when making an investment decision and decide which one is best suited to your risk tolerance, investment goals, and financial objectives.