5 Best Pharma ETFs

2. Health Care Select Sector SPDR Fund (NYSEARCA:XLV)

5-Year Performance as of September 11, 2023: 43.79%

Total Net Assets as of September 11, 2023: $40.07 billion

Expense Ratio: 0.10%

Health Care Select Sector SPDR Fund (NYSEARCA:XLV) is the biggest ETF on our list in terms of total assets under management (AUM). Additionally, it is one of the two ETFs on our list with the lowest expense ratio. In December 2023, the fund will mark its 25th anniversary since its inception.

UnitedHealth Group Incorporated (NYSE:UNH), Eli Lilly and Company (NYSE:LLY), and Johnson & Johnson (NYSE:JNJ) are the top three holdings of the ETF. Together, these three companies have a weightage of 25.55%. The ETF allocates 31.2% of its assets to the pharmaceutical industry, with healthcare providers following closely behind with a 21.08% allocation.