Healthcare Hot Stocks – Pharmaceuticals, Market Vectors Pharmaceutical ETF (PPH)
The Market Vectors Pharmaceutical ETF (PPH) is the best performing healthcare ETF with a total return of 18% this year.
PPH invests in the 25 largest and most liquid U.S.-listed pharmaceutical companies based on market cap and trading volume. While 58% of the holdings in PPH are U.S.-based, a healthy exposure to stocks in Switzerland, the U.K. and France has helped propel it past its peers this year. Investors in this ETF have benefited from large jumps in hot stocks Allergan (AGN) and Novo Nordisk (NVO), which have gained 53% and 26% respectively.
The continued development and distribution of new drugs makes the pharmaceutical industry a bright spot among healthcare stocks for the foreseeable future.
PPH charges a net expense ratio of 0.35%, or $3.50 for every $1,000 invested, and has a 30-day SEC yield of 1.8%.