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IHE - ETF AI Analysis

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IHE

iShares U.S. Pharmaceuticals ETF (IHE)

Rating:69Neutral
Price Target:
IHE, the iShares U.S. Pharmaceuticals ETF, has a solid overall rating driven mainly by its large positions in Johnson & Johnson and Eli Lilly, both of which show strong financial performance and positive earnings outlooks that support the fund’s quality. Additional strength comes from holdings like Merck and Royalty Pharma, which combine robust profitability with attractive growth prospects, while weaker names such as Viatris and Jazz Pharmaceuticals, where financial and valuation challenges are more pronounced, modestly weigh on the fund. The main risk factor is the ETF’s heavy concentration in a single industry—U.S. pharmaceuticals—which means performance is closely tied to sector-specific trends and regulatory developments.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the last few months, indicating solid recent momentum.
Leading Pharmaceutical Holdings
Large positions in well-known companies like Johnson & Johnson, Eli Lilly, Merck, and several other strong-performing drug makers support the fund’s results.
Focused Healthcare Exposure
Almost all of the fund is invested in U.S. healthcare and pharmaceutical stocks, giving targeted exposure to a defensive, essential industry.
Negative Factors
High Stock Concentration
Two companies, Johnson & Johnson and Eli Lilly, make up a very large share of the portfolio, increasing the impact if either one struggles.
Sector Concentration Risk
With nearly all assets in the healthcare sector, the fund is heavily exposed to industry-specific risks such as drug pricing and regulation.
Mixed Performance Among Top Holdings
While many holdings have performed well, some key positions like Pfizer and Zoetis have been weak, which can drag on overall returns.

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

IHE Summary

IHE is the iShares U.S. Pharmaceuticals ETF, which follows the DJ US Select / Pharmaceutical index and focuses on major drug and health care companies in the United States. It holds well-known names like Johnson & Johnson and Eli Lilly, along with other firms that develop and sell medicines for many different conditions. Investors might consider IHE for exposure to the long-term growth and steady demand in the pharmaceutical industry, which can help diversify a portfolio. However, this ETF is heavily concentrated in drug makers, so its value can go up or down based on changes in health care regulations, drug pricing, and the overall stock market.
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 essentially a bet on Big Pharma, with Johnson & Johnson and Eli Lilly acting as the twin engines of the fund. J&J has been steadily rising, giving the ETF a solid defensive backbone, while Lilly’s performance has been more mixed lately, losing a bit of steam after a strong run. Mid-sized names like Merck, Bristol-Myers, and Viatris are quietly adding momentum, and Royalty Pharma and Jazz Pharmaceuticals are rising stars helping to lift returns. With nearly all holdings U.S.-based and health care focused, this is a tightly concentrated play on the American pharmaceuticals story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Johnson & Johnson22.62%$364.09M$634.77B60.00%
78
Outperform
Eli Lilly & Co21.38%$344.07M$1.13T48.19%
72
Outperform
Bristol-Myers Squibb4.57%$73.47M$126.79B31.68%
78
Outperform
Viatris4.51%$72.62M$20.23B90.44%
60
Neutral
Merck & Company4.46%$71.70M$323.72B55.56%
80
Outperform
Royalty Pharma4.37%$70.34M$33.88B58.47%
79
Outperform
Pfizer3.91%$62.93M$139.86B1.48%
74
Outperform
Zoetis3.84%$61.79M$31.59B-48.98%
74
Outperform
Jazz Pharmaceuticals3.52%$56.67M$15.95B117.62%
64
Neutral
Elanco Animal Health2.79%$44.87M$12.44B74.28%
69
Neutral

IHE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
95.45
Positive
100DMA
91.06
Positive
200DMA
86.87
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IHE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 100.69, equal to the 50-day MA of 95.45, and equal to the 200-day MA of 86.87, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHE.

IHE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.60B0.38%
69
Neutral
$9.35B0.44%
65
Neutral
$3.41B0.38%
73
Outperform
$3.29B0.08%
71
Outperform
$3.01B0.38%
74
Outperform
$2.82B0.55%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IHE
iShares U.S. Pharmaceuticals ETF
102.90
36.78
55.63%
IBB
iShares Biotechnology ETF
IYH
iShares U.S. Healthcare ETF
FHLC
Fidelity MSCI Health Care Index ETF
IHI
iShares U.S. Medical Devices ETF
FBT
First Trust NYSE Arca Biotechnology Index Fund
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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