iShares US Pharmaceuticals ETF

IHE

Market cap $602M

Pharma's Trump-Pfizer boost sparks momentum, making ETFs PPH, IHE, PJP & XPH attractive for defensive, undervalued growth plays.

Drugmakers have been bracing for levies and sought to get ahead of them with pledges to invest billions more on domestic manufacturing.

President Donald Trump said Thursday that he will put import taxes of 100% on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks starting on Oct. 1.The posts on his social media site showed that Trump's devotion to tariffs did not end with the trade frameworks and import taxes that were launched in August, a reflection of the president's confidence that taxes will help to reduce the government's budget deficit while increasing domestic manufacturing.While Trump did not provide a legal justification for the tariffs, he appeared to stretch the bounds of his role as commander-in-chief by stating on Truth Social that the taxes on imported kitchen cabinets and sofas were needed “for National Security and other reasons.”Under the Trade Expansion Act of 1962, the administration launched a Section 232 investigation in April about the impacts on national security from pharmaceutical drug and truck imports.

Pharmaceutical stocks mostly gained Friday, as traders appeared to shrug off or even cheer President Donald Trump's rollout of a new tariff plan for drugmakers.

Trump's 100% tariff on imported drugs jolts markets, slamming pharma giants and dragging ETFs like XPH, FTXH, IHE, and PPH lower.

Looking for broad exposure to the Healthcare - Pharma segment of the equity market? You should consider the iShares U.S. Pharmaceuticals ETF (IHE), a passively managed exchange traded fund launched on May 1, 2006.

The iShares U.S. Pharmaceuticals ETF (IHE) was launched on 05/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Pharma segment of the equity market.

The healthcare providers industry is undervalued by about 22% versus 11-year averages, while pharma/biotech and life science tools trade near historical baseline in valuation. IHE ETF offers exposure to U.S. pharmaceuticals, with 47% of assets in Eli Lilly and Johnson & Johnson, posing significant concentration risk. IHE has lagged XLV in long-term returns but outperformed over the past 12 months, offering sufficient liquidity for both investors and traders.

Outlook for pharma sector as Trump pushes for regulatory changes. The impact of tariffs on drugmakers.

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