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IHE - ETF AI Analysis
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iShares U.S. Pharmaceuticals ETF (IHE)
Rating:70Outperform
Price Target:―
Positive Factors
Solid Recent Performance
The ETF has shown strong gains over the last three months, indicating positive recent momentum in its holdings.
Leading Pharmaceutical Holdings
Several major positions like Johnson & Johnson, Merck, and others have delivered steady to strong gains, supporting the fund’s overall results.
Focused Healthcare Exposure
With almost all assets in U.S. healthcare and pharmaceuticals, the fund gives targeted exposure to a defensive sector that can be more resilient in economic slowdowns.
Negative Factors
High Stock Concentration
The two largest holdings, Eli Lilly and Johnson & Johnson, make up a large share of the portfolio, increasing the impact if either stock struggles.
Narrow Sector and Country Focus
The ETF is almost entirely invested in U.S. healthcare, offering little diversification across other sectors or regions.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for a passive ETF, which slightly reduces the net return investors keep over time.
IHE vs. SPDR S&P 500 ETF (SPY)
AUM966.46M
RegionNorth America
Expense Ratio0.38%
Beta0.50
IssueriShares
Inception DateMay 01, 2006
Dividend Yield1.73%
Asset ClassEquity
Index TrackedDJ US Select / Pharmaceutical
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume65,649
30 Day Avg. Volume113,532
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
104.76Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering55
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Eli Lilly and Johnson & Johnson, along with other firms that develop and sell medicines for many health conditions. Someone might invest in IHE to get simple, one-stop exposure to the pharmaceutical industry, which can benefit from an aging population and ongoing medical advances. A key risk is that it is heavily concentrated in pharmaceutical stocks, so its price can swing with changes in drug regulations, pricing pressures, and health care news.
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 very much a U.S. big-pharma story, with Eli Lilly and Johnson & Johnson sitting in the driver’s seat and together steering most of the fund’s moves. Lilly has been steadily rising on optimism around its drug pipeline, while J&J’s recent strength adds another solid engine of growth. Merck and Bristol-Myers are also contributing, though Bristol-Myers looks a bit more mixed. On the flip side, Zoetis has been losing some steam lately, acting as a small drag. Overall, this is a concentrated bet on U.S. pharmaceutical heavyweights.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Johnson & Johnson | 23.66% | $229.21M | $547.51B | 49.36% | 78 Outperform | |
| Eli Lilly & Co | 22.44% | $217.45M | $980.50B | 27.87% | 72 Outperform | |
| Merck & Company | 4.86% | $47.06M | $273.69B | 11.59% | 80 Outperform | |
| Bristol-Myers Squibb | 4.62% | $44.79M | $112.07B | -6.62% | 78 Outperform | |
| Zoetis | 4.55% | $44.05M | $55.01B | -26.96% | 74 Outperform | |
| Pfizer | 4.41% | $42.73M | $150.33B | -0.30% | 74 Outperform | |
| Royalty Pharma | 4.16% | $40.28M | $24.06B | 31.98% | 79 Outperform | |
| Viatris | 4.00% | $38.75M | $15.08B | 16.05% | 60 Neutral | |
| Elanco Animal Health | 3.17% | $30.75M | $11.96B | 100.17% | 69 Neutral | |
| Jazz Pharmaceuticals | 2.65% | $25.69M | $10.00B | 32.26% | 64 Neutral |
IHE Technical Analysis
Positive
―
Price Trends
84.76
Positive
79.21
Positive
72.57
Positive
Market Momentum
0.68
Positive
56.51
Neutral
53.01
Neutral
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 86.03, equal to the 50-day MA of 84.76, and equal to the 200-day MA of 72.57, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHE.
IHE Peer Comparison
Comparison Results
Performance Comparison
IHE
iShares U.S. Pharmaceuticals ETF
86.68
18.85
27.79%
FXH
First Trust Health Care AlphaDEX Fund
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―
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RSPH
Invesco S&P 500 Equal Weight Health Care ETF
―
―
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IHF
iShares U.S. Healthcare Providers ETF
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―
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PJP
Invesco Dynamic Pharmaceuticals ETF
―
―
―
XPH
SPDR S&P Pharmaceuticals ETF
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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.
Disclaimer
This 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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