In this article, we will discuss the 5 best performing healthcare ETFs in 2022. If you want to explore similar ETFs, you can read 10 Best Performing Healthcare ETFs in 2022.
5. Invesco Dynamic Pharmaceuticals ETF (NYSEARCA:PJP)
YTD Return as of December 9: -2.29%
As of December 9, the Invesco Dynamic Pharmaceuticals ETF (NYSEARCA:PJP) has lost 2.29% year to date and has outperformed the S&P 500 by over 15%. The fund ranks among the best performing healthcare ETFs in 2022. The fund tracks the performance of the Dynamic Pharmaceutical Intellidex Index and uses a full replication technique. The fund has an expense ratio of 0.56% and pays out dividends on a quarterly basis. The fund has a yield of 0.97%.
The Invesco Dynamic Pharmaceuticals ETF (NYSEARCA:PJP) has 28 holdings and a top ten holdings concentration of 59.03%. Among the fund’s notable holdings, we have AbbVie Inc. (NYSE:ABBV). On November 17, Credit Suisse analyst Trung Huynh took coverage of AbbVie Inc. (NYSE:ABBV) with an Outperform rating and a $170 price target.
As of September 30, Arrowstreet Capital is the top shareholder in AbbVie inc. (NYSE:ABBV). The fund’s stakes are valued at $431.6 million in the company.
Here is what Baron Funds had to say about AbbVie Inc. (NYSE:ABBV) in its third-quarter 2022 investor letter:
“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”
4. Health Care Select Sector SPDR Fund (NYSEARCA:XLV)
YTD Return as of December 9: -0.95%
The Health Care Select Sector SPDR Fund (NYSEARCA:XLV) is offering a yield of 1.42% and has an expense ratio of 0.11%. The fund mirrors the returns of the Health Care Select Sector Index and employs a full replication technique. As of December 9, the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) has lost 0.95% year to date and is part of the best performing healthcare ETFs in 2022.
The Health Care Select Sector SPDR Fund (NYSEARCA:XLV) has 66 holdings and a top ten holdings concentration of 55.03%. Johnson & Johnson (NYSE:JNJ) is one of the top holdings of the Health Care Select Sector SPDR Fund (NYSEARCA:XLV). At the close of Q3 2022, Ken Fisher’s Fisher Asset Management was the largest investor in Johnson & Johnson (NYSE:JNJ) and disclosed a position worth $967.2 million in the company.
This December, Morgan Stanley analyst Terence Flynn raised his price target on Johnson & Johnson (NYSE:JNJ) to $178 from $170 and maintained an Equal Weight rating on the shares. As of December 9, the stock has gained 2.45% year to date and is offering a yield of 2.57%.
Here is what Distillate Capital Partners LLC had to say about Johnson & Johnson (NYSE:JNJ) in its second-quarter 2022 investor letter:
“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
3. Virtus LifeSci Biotech Products ETF (NYSEARCA:BBP)
YTD Return as of December 9: 0.66%
The Virtus LifeSci Biotech Products ETF (NYSEARCA:BBP) has gained 0.66% so far in 2022, as of December 9, and is ranked high among the best performing healthcare ETFs in 2022. The fund uses a full replication technique to track the returns of the LifeSci Biotechnology Products Index. The fund has an expense ratio of 0.79%.
The Virtus LifeSci Biotech Products ETF (NYSEARCA:BBP) has 54 holdings and a top ten holdings concentration of 29.34%. One of the fund’s most notable holdings is Biogen Inc. (NASDAQ:BIIB), which has gained 16.89% year to date as of December 9. On December 1, Atlantic Equities analyst Steve Chesney raised his price target on Biogen Inc. (NASDAQ:BIIB) to $295 from $220 and reiterated a Neutral rating on the shares.
As of September 30, Steven Cohen’s Point72 Asset Management is the largest shareholder in Biogen Inc. (NASDAQ:BIIB). The fund’s stakes are valued at $448 million.
Here is what ClearBridge Investments had to say about Biogen Inc. (NASDAQ:BIIB) in its third-quarter 2022 investor letter:
“Biogen Inc. (NASDAQ:BIIB) was the leading contributor among several biopharma names, boosted by positive, pivotal clinical data for its next-generation Alzheimer’s treatment Lecanemab. In a pivotal trial, the drug proved safe and efficacious in slowing progression of Alzheimer’s disease.”
2. VanEck Pharmaceutical ETF (NASDAQ:PPH)
YTD Return as of December 9: 2.08%
The VanEck Pharmaceutical ETF (NASDAQ:PPH) uses a full replication technique to track the returns of the MVIS US Listed Pharmaceutical 25 Index. The fund has gained 2.08% year to date, as of December 9, and has outperformed the S&P 500 by roughly 20%. The fund ranks among the best performing healthcare ETFs in 2022 and has an expense ratio of 0.35%.
The VanEck Pharmaceutical ETF (NASDAQ:PPH) has 26 holdings and a top ten holdings concentration of 57.65%. Among the fund’s most prominent holdings we have Pfizer Inc. (NYSE:PFE). As of September 30, AQR Capital Management is the top investor in Pfizer Inc. (NYSE:PFE) and has a position worth $467.5 million in the company.
On November 17, Credit Suisse analyst Trung Huynh started coverage of Pfizer Inc. (NYSE:PFE) with an Outperform rating and a $55 price target.
Here is what Diamond Hill Capital had to say about Pfizer Inc. (NYSE:PFE) in its third-quarter 2022 investor letter:
“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.
1. First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH)
YTD Return as of December 9: 3.37%
The First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH) is ranked high among the best performing healthcare ETFs in 2022. The fund has gained 3.37% year to date, as of December 9, and has outperformed the S&P 500 by over 20%. The fund has an expense ratio of 0.60% and a yield of 1.09%. The fund mirrors the returns of the Nasdaq US Smart Pharmaceuticals Index and employs a full replication technique.
The First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH) has 30 holdings and a top ten holdings concentration of 64.28%. One the fund’s top ten holdings is Amgen, Inc. (NASDAQ:AMGN). This December, Oppenheimer analyst Jay Olson raised his price target on Amgen, Inc. (NASDAQ:AMGN) to $310 from $300 and reiterated an Outperform rating on the shares.
At the close of Q3 2022, Two Sigma Advisors was the dominant investor in Amgen, Inc. (NASDAQ:AMGN) and disclosed a position worth $379.4 million in the company.
Here is what Smead Capital Management had to say about Amgen Inc. (NASDAQ:AMGN) in its third-quarter 2022 investor letter:
“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors was dominated by Amgen (NASDAQ:AMGN). Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”
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