IHE - ETF AI Analysis
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iShares U.S. Pharmaceuticals ETF (IHE)
Rating:70Outperform
Price Target:―
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)
AUM951.61M
RegionNorth America
Expense Ratio0.38%
Beta0.48
IssueriShares
Inception DateMay 01, 2006
Dividend Yield1.57%
Asset ClassEquity
Index TrackedDJ US Select / Pharmaceutical
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume79,763
30 Day Avg. Volume87,659
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
115.62Price Target Upside― Downside
Rating ConsensusStrong 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 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 driven by two giants, Eli Lilly and Johnson & Johnson, which together steer most of the fund’s course. Lilly has been rising lately, giving the ETF a solid boost, while J&J’s steadier, slightly mixed performance keeps things on an even keel. Mid-sized players like Royalty Pharma and Jazz Pharmaceuticals have been climbing and add extra lift, whereas Pfizer has been more of a slow walker than a sprinter. With nearly all its bets in U.S. pharma names, this fund is a pure play on the American drug industry.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Eli Lilly & Co | 24.51% | $228.46M | $1.07T | 39.94% | 72 Outperform | |
| Johnson & Johnson | 21.17% | $197.28M | $574.10B | 52.23% | 78 Outperform | |
| Royalty Pharma | 5.04% | $46.94M | $31.40B | 60.12% | 79 Outperform | |
| Viatris | 4.78% | $44.55M | $18.36B | 73.49% | 60 Neutral | |
| Merck & Company | 4.42% | $41.20M | $294.13B | 47.59% | 80 Outperform | |
| Pfizer | 4.04% | $37.70M | $145.91B | 5.35% | 74 Outperform | |
| Bristol-Myers Squibb | 4.00% | $37.27M | $113.54B | 12.25% | 78 Outperform | |
| Jazz Pharmaceuticals | 3.67% | $34.23M | $14.42B | 107.81% | 64 Neutral | |
| Elanco Animal Health | 2.99% | $27.87M | $11.42B | 69.72% | 69 Neutral | |
| Zoetis | 2.93% | $27.28M | $34.08B | -51.85% | 74 Outperform |
IHE Technical Analysis
Positive
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Price Trends
89.04
Positive
88.42
Positive
83.03
Positive
Market Momentum
1.52
Negative
65.26
Neutral
85.43
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 91.32, equal to the 50-day MA of 89.04, and equal to the 200-day MA of 83.03, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 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
94.75
28.82
43.71%
IHF
iShares U.S. Healthcare Providers ETF
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FXH
First Trust Health Care AlphaDEX Fund
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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.
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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