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IHE - ETF AI Analysis
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iShares U.S. Pharmaceuticals ETF (IHE)
Rating:71Outperform
Price Target:
$90.00
Positive Factors
Strong Top Holdings
Key holdings like Johnson & Johnson and Royalty Pharma have delivered strong year-to-date performance, supporting the ETF's overall returns.
Focused Sector Exposure
The ETF's concentration in the health care sector provides targeted exposure to a defensive industry with steady demand.
Reasonable Expense Ratio
The fund's expense ratio is relatively low, making it a cost-effective option for investors seeking pharmaceutical sector exposure.
Negative Factors
Over-Concentration in Top Holdings
The top two holdings, Johnson & Johnson and Eli Lilly, make up nearly half of the portfolio, increasing reliance on their performance.
Underperforming Holdings
Several holdings, including Merck, Viatris, and Pfizer, have shown weak year-to-date performance, which could drag on the ETF's returns.
Limited Geographic Diversification
The ETF is heavily focused on U.S. companies, offering little exposure to international markets and global growth opportunities.
IHE vs. SPDR S&P 500 ETF (SPY)
AUM684.12M
RegionNorth America
Expense Ratio0.38%
Beta0.48
IssueriShares
Inception DateMay 01, 2006
Dividend Yield1.33%
Asset ClassEquity
Index TrackedDJ US Select / Pharmaceutical
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume149,912
30 Day Avg. Volume59,345
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
92.57Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering45
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
IHE Summary
The iShares U.S. Pharmaceuticals ETF (IHE) is an investment fund that focuses on U.S.-based pharmaceutical companies, offering exposure to the health care sector. It includes well-known companies like Johnson & Johnson and Eli Lilly, which are leaders in developing and marketing medicines and treatments. This ETF may appeal to investors looking for growth opportunities in health care, driven by medical advancements and increasing demand from an aging population. However, new investors should be aware that the ETF’s performance is closely tied to the pharmaceutical industry, which can be affected by regulatory changes and market conditions.
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
The iShares U.S. Pharmaceuticals ETF (IHE) leans heavily on industry giants like Eli Lilly and Johnson & Johnson, which are steady performers driving the fund’s resilience. Eli Lilly stands out with strong pipeline advancements and market share gains, while Johnson & Johnson benefits from successful product launches and a stable outlook. On the flip side, Pfizer and Bristol-Myers Squibb are dragging the fund, with weak momentum and challenges in revenue growth. The ETF’s focus on U.S.-based pharmaceutical companies offers concentrated exposure to health care innovation, though its reliance on a few key names adds a layer of risk.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Eli Lilly & Co | 26.86% | $189.47M | $1.01T | 41.74% | 76 Outperform | |
| Johnson & Johnson | 22.20% | $156.60M | $496.44B | 32.27% | 78 Outperform | |
| Merck & Company | 4.53% | $31.93M | $249.20B | -0.75% | 78 Outperform | |
| Royalty Pharma | 4.16% | $29.36M | $22.95B | 50.17% | 80 Outperform | |
| Viatris | 3.91% | $27.56M | $12.17B | -20.88% | 60 Neutral | |
| Pfizer | 3.89% | $27.43M | $143.39B | -3.63% | 68 Neutral | |
| Bristol-Myers Squibb | 3.84% | $27.07M | $97.23B | -18.75% | 69 Neutral | |
| Elanco Animal Health | 3.64% | $25.66M | $11.47B | 72.44% | 69 Neutral | |
| Jazz Pharmaceuticals | 3.48% | $24.55M | $10.99B | 45.49% | 63 Neutral | |
| Zoetis | 3.12% | $21.97M | $54.15B | -31.25% | 70 Outperform |
IHE Technical Analysis
Positive
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Price Trends
75.34
Positive
71.93
Positive
69.20
Positive
Market Momentum
2.29
Negative
81.17
Negative
89.15
Negative
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 78.60, equal to the 50-day MA of 75.34, and equal to the 200-day MA of 69.20, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 81.17 is Negative, neither overbought nor oversold. The STOCH value of 89.15 is Negative, 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
84.05
15.94
23.40%
FXH
First Trust Health Care AlphaDEX Fund
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IHF
iShares U.S. Healthcare Providers ETF
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RSPH
Invesco S&P 500 Equal Weight Health Care ETF
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PJP
Invesco Dynamic Pharmaceuticals ETF
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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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