VanEck Pharmaceutical ETF

PPH

Market cap $1.2B

The approval of Novo Nordisk's (NYSE: NVO)oral Wegovy is bringing new interest to health care and pharmaceutical ETFs that provide access to the growing GLP-1 market without requiring investors to choose one specific company.

The VanEck Pharmaceutical ETF offers concentrated exposure to large-cap global pharma leaders, balancing growth, defensive, and non-drug cash flow stabilizers. PPH has demonstrated resilience, outperforming during market drawdowns and delivering an ~11.2% CAGR over five years with lower volatility than the S&P 500. The ETF's structure avoids excessive mega-cap or early-stage risk, with performance driven by earnings, product cycles, and disciplined capital allocation.

Pharma ETFs like IHE are poised to surge as the UK-US zero-tariff deal raises UK drug prices and strengthens major U.S. players' outlook.

The move marks a victory for the Trump administration's campaign to get other countries to pay more for drugs.

Looking for broad exposure to the Healthcare - Pharma segment of the equity market? You should consider the VanEck Pharmaceutical ETF (PPH), a passively managed exchange traded fund launched on December 20, 2011.

The price cuts will save Medicare billions of dollars in prescription-drug spending.

The healthcare sector's renewed momentum offers fertile ground for investors wanting to outperform by picking the best stocks from the broader indexes. Goldman Sachs identified 29 healthcare stocks in the Russell 1000 universe with positive recent consensus revisions to 2026 EPS estimates and that trade at attractive valuations. Goldman sees "more opportunity for alpha than beta" as wide return dispersion and increasing M&A activity in healthcare may favor selected winners.

The healthcare sector has experienced one of its most significant de-ratings in 35 years, with valuations now at a 30% discount to the broader market. Healthcare trades at historical valuation discounts across multiple metrics.

Pharma's strong pipelines, reduced policy risks, and demand growth drive renewed investor interest. PPH offers targeted access to top innovators like Eli Lilly and Merck.

Pharmaceutical stocks are having a moment. The S&P 500 Pharmaceuticals Index recently rose 11% during five trading days, its best weekly gain since 2022.