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IHE - ETF AI Analysis

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IHE

iShares U.S. Pharmaceuticals ETF (IHE)

Rating:70Neutral
Price Target:
IHE, the iShares U.S. Pharmaceuticals ETF, has a solid overall rating driven mainly by large positions in high-quality pharma leaders like Johnson & Johnson, Eli Lilly, Merck, and Pfizer, which benefit from strong financial performance, positive earnings outlooks, and strategic growth initiatives. These strengths are partly offset by weaker names such as Viatris and Jazz Pharmaceuticals, where financial and valuation challenges weigh on their contribution. The main risk factor is the fund’s concentration in a single industry—U.S. pharmaceuticals—meaning its performance is heavily tied to the fortunes and regulatory environment of this sector.
Positive Factors
Strong Core Holdings
Several major positions like Johnson & Johnson, Royalty Pharma, Viatris, Pfizer, Bristol-Myers Squibb, Merck, and Jazz Pharmaceuticals have shown solid gains this year, helping support the fund’s overall results.
Focused Healthcare Exposure
Almost all of the ETF is invested in the health care sector, giving targeted exposure to U.S. pharmaceutical companies for investors who want to concentrate in this area.
Meaningful Asset Size
With close to a billion dollars in assets, the fund is large enough to offer stability and tradability for most everyday investors.
Negative Factors
High Stock Concentration
Johnson & Johnson and Eli Lilly together make up a large share of the portfolio, so the ETF’s performance is heavily influenced by just a couple of companies.
Mixed Performance Among Top Holdings
Some key holdings such as Eli Lilly and Zoetis have been weak this year, which has weighed on the fund’s short-term results.
Single-Sector, U.S.-Only Focus
The ETF is almost entirely invested in U.S. health care stocks, which limits diversification across other sectors and regions and can increase risk if this industry or country faces challenges.

IHE vs. SPDR S&P 500 ETF (SPY)

IHE Summary

The iShares U.S. Pharmaceuticals ETF (IHE) tracks the DJ US Select / Pharmaceutical index, focusing on major U.S. drugmakers. It holds well-known companies like Johnson & Johnson and Eli Lilly, along with other firms that develop and sell medicines for many health conditions. Someone might invest in IHE to get diversified exposure to the pharmaceutical industry, which can benefit from an aging population and ongoing medical advances. However, this ETF is heavily concentrated in one sector, so its price can swing with changes in drug regulations, patent news, and health care policy.
How much will it cost me?The iShares U.S. Pharmaceuticals ETF (IHE) has an expense ratio of 0.38%, meaning you’ll pay $3.80 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it is a sector-focused fund, which typically requires more active management compared to broad market index funds.
What would affect this ETF?The iShares U.S. Pharmaceuticals ETF (IHE) could benefit from an aging population and increasing demand for innovative treatments, as well as advancements in biotechnology and drug development by top holdings like Johnson & Johnson and Eli Lilly. However, it may face challenges from regulatory changes, patent expirations, and pricing pressures on pharmaceutical products, which could impact profitability for its key companies. Economic downturns or shifts in healthcare policies could also negatively affect the sector's performance.

IHE Top 10 Holdings

IHE is heavily tilted toward U.S. pharma giants, with Johnson & Johnson acting as a steady anchor while Merck adds a modest tailwind. The real spark lately has come from mid-sized names like Royalty Pharma, Viatris, and Jazz Pharmaceuticals, which have been rising and quietly pulling more of the fund’s weight. On the flip side, Eli Lilly has been losing steam this year, and Zoetis looks mixed, tempering overall gains. With nearly all exposure in U.S. health care, this ETF is a focused bet on the American drug industry’s next chapter.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Johnson & Johnson21.47%$201.24M$547.64B45.05%
78
Outperform
Eli Lilly & Co20.11%$188.45M$835.18B-1.03%
72
Outperform
Royalty Pharma4.92%$46.15M$28.49B52.58%
79
Outperform
Viatris4.82%$45.17M$16.99B79.52%
60
Neutral
Zoetis4.56%$42.71M$49.15B-23.25%
74
Outperform
Pfizer4.54%$42.59M$153.59B16.22%
74
Outperform
Bristol-Myers Squibb4.46%$41.81M$119.87B19.23%
78
Outperform
Merck & Company4.39%$41.17M$276.38B32.50%
80
Outperform
Jazz Pharmaceuticals3.45%$32.38M$12.10B78.24%
64
Neutral
Elanco Animal Health3.10%$29.06M$11.36B132.28%
69
Neutral

IHE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
87.35
Negative
100DMA
86.62
Negative
200DMA
79.45
Positive
Market Momentum
MACD
-0.31
Positive
RSI
40.55
Neutral
STOCH
5.71
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IHE, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 86.96, equal to the 50-day MA of 87.35, and equal to the 200-day MA of 79.45, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 5.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IHE.

IHE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$926.20M0.38%
70
Neutral
$866.78M0.61%
71
Outperform
$743.13M0.38%
69
Neutral
$705.14M0.40%
71
Outperform
$352.30M0.35%
59
Neutral
$349.10M0.57%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IHE
iShares U.S. Pharmaceuticals ETF
84.82
20.67
32.22%
FXH
First Trust Health Care AlphaDEX Fund
IHF
iShares U.S. Healthcare Providers ETF
RSPH
Invesco S&P 500 Equal Weight Health Care ETF
XPH
SPDR S&P Pharmaceuticals ETF
PJP
Invesco Dynamic Pharmaceuticals ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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