5 Biggest Pharmaceutical ETFs for Investors in 2026
Experienced and novice investors alike may want to consider pharmaceutical exchange-traded funds (ETFs) as a way to gain exposure to the top pharma companies and the pharma market as a whole.
Like all ETFs, pharmaceutical ETFs are a good option for those who want to trade a set of assets in the pharmaceutical industry instead of focusing solely on individual pharmaceutical stocks.
The main advantage of a pharmaceutical ETF is the fact that it can provide exposure to an overarching sector, but still trades like a stock. Pharma ETFs also offer lower volatility than pharma stocks as, even if a few stocks dip or gain significantly, the overall fund will often be moderated by other holdings.
Big Pharma ETFs
Many of these funds have diverse holdings across some of the most important sectors in the pharmaceutical industry, including pain therapeutics, oncology, vaccines and biotechnology. Data was gathered on January 15, 2026.
1. VanEck Pharmaceutical ETF (NASDAQ:PPH)
Total assets under management: US$1.2 billion
Expense ratio: 0.36 percent
Established in late 2011, the VanEck Pharmaceutical ETF tracks the MVIS US Listed Pharmaceutical 25 Index. It has the capacity to provide big returns, even though there are some risks attached to the ETF. An analyst report indicates that investors looking for ‘tactical exposure’ to the pharma sector might consider this ETF as an investment option.
The ETF has 26 holdings, with the top five being Eli Lilly (NYSE:LLY), Novartis (NYSE:NVS), Merck & Company (NYSE:MRK), Novo Nordisk (NYSE:NVO) and Bristol-Myers Squibb (NYSE:BMY).
2. iShares US Pharmaceuticals ETF (ARCA:IHE)
Total assets under management: US$959.17 million
Expense ratio: 0.38 percent
Created on May 5, 2006, the iShares US Pharmaceuticals ETF tracks some of the top US pharma companies. In total, the iShares US Pharmaceuticals ETF has 45 holdings, with the vast majority being large-cap stocks.
Of its holdings, Johnson & Johnson (NYSE:JNJ) and Eli Lilly are by far the largest portions in its portfolio, combining for about 45 percent, followed by Merck & Co, Bristol-Myers Squibb and Zoetis (NYSE:ZTS).
3. Invesco Pharmaceuticals ETF (ARCA:PJP)
Total assets under management: US$385.21 million
Expense ratio: 0.57 percent
The Invesco Pharmaceuticals ETF is primarily focused on providing exposure to US-based pharma companies. An analyst report states that this ETF chooses individual securities based on an array of investment criteria, some of which are stock valuation and risk factors.
This ETF was started on June 23, 2005, and currently tracks 31 companies. Its top holdings are Merck & Co, Johnson & Johnson, Eli Lilly, Pfizer (NYSE:PFE) and Abbott Laboratories (NYSE:ABT).
4. State Street SPDR S&P Pharmaceuticals ETF (ARCA:XPH)
Total assets under management: US$234.14 million
Expense ratio: 0.35 percent
The State Street SPDR S&P Pharmaceuticals ETF came into the market on June 19, 2006, and represents the pharmaceutical sub-industry sector of the S&P Total Market Index (INDEXSP:SPTMI).
This pharma ETF tracks 52 holdings, with relatively close weighting among its holdings, a fact that sets it apart from other entries on this list. XPH’s top five holdings are MBX Biosciences (NASDAQ:MBX), Mind Medicine (NASDAQ:MNMD), Organon & Co (NYSE:OGN), Axsome Therapeutics (NASDAQ:AXSM) and Liquidia (NASDAQ:LQDA).
5. KraneShares MSCI All China Health Care Index ETF (ARCA:KURE)
Total assets under management: US$86.81 million
Expense ratio: 0.65 percent
The KraneShares MSCI All China Health Care Index ETF was launched in February 2018 and tracks an index of large- and mid-cap Chinese stocks in the healthcare sector, all weighted by market capitalization.
The ETF tracks 50 holdings, and its top five are BeOne Medicines (NASDAQ:ONC), Jiangsu Hengrui Medicine (SHA:600276), WuXi Biologics (HKEX:2269), Innovent Biologics (HKEX:1801) and Akeso (HKEX:9926).
Securities Disclosure: I, Melissa Pistilli, hold no investment interest in any of the companies mentioned in this article.
