Top Pharmaceutical ETFs Worth Watching: Your Guide to the Booming Healthcare Sector in 2025

The pharmaceutical sector continues to attract significant investor attention, with the global market projected to reach US$1.75 trillion by the end of this decade according to Evaluate Pharma. For those looking to tap into this growth without cherry-picking individual stocks, pharmaceutical exchange-traded funds offer a compelling alternative. These investment vehicles allow you to gain diversified exposure to the entire big pharma ETF landscape while maintaining the flexibility of stock trading.

Why Choose Pharmaceutical ETFs?

Rather than betting on a single company, pharma ETFs give you a basket of pharmaceutical leaders spanning multiple therapeutic areas—from oncology to vaccines to pain management. The benefits are straightforward: you get sector-wide exposure with lower volatility and reduced expenses compared to picking individual big pharma ETF components. It’s a smart way for both seasoned and emerging investors to participate in healthcare’s ongoing renaissance.

The Five Most Substantial Pharma Funds by Assets Under Management

Using data compiled on November 20, 2025, we’ve identified the five largest pharmaceutical-focused ETFs based on total assets under management. These funds showcase the diversity within big pharma ETF options available today.

1. VanEck Pharmaceutical ETF (PPH) – US$1.15 Billion in AUM

Launched in late 2011, this big pharma ETF tracks the MVIS US Listed Pharmaceutical 25 Index and maintains 26 holdings. The fund’s top positions include powerhouses like Eli Lilly, Novartis, Merck & Company, Novo Nordisk, and McKesson. Industry analysts suggest this fund suits investors seeking “tactical exposure” to the pharmaceutical sector, particularly those comfortable with sector-specific risk levels.

2. iShares US Pharmaceuticals ETF (IHE) – US$669.2 Million in AUM

Established May 5, 2006, this big pharma ETF provides access to 45 major US pharmaceutical companies, predominantly large-cap names. Johnson & Johnson and Eli Lilly dominate the portfolio, representing nearly half its value. The remaining exposure includes Merck, Royalty Pharma, and Viatris, offering well-rounded big pharma ETF diversification.

3. Invesco Pharmaceuticals ETF (PJP) – US$299.48 Million in AUM

Starting operations on June 23, 2005, this fund zeros in on US-based pharmaceutical enterprises and holds 31 securities selected through rigorous valuation and risk analysis. Its largest positions encompass Eli Lilly, Amgen, Johnson & Johnson, Merck, and AbbVie—a mix reflecting the big pharma ETF focus on established market leaders.

4. State Street SPDR S&P Pharmaceuticals ETF (XPH) – US$189.93 Million in AUM

Arriving in 2006, this big pharma ETF mirrors the pharmaceutical sub-segment of the S&P Total Market Index across 52 holdings. What distinguishes this particular big pharma ETF is its more balanced weighting approach compared to peers. Key holdings include Jazz Pharmaceuticals, Tarsus Pharmaceuticals, Eli Lilly, Ligand Pharmaceuticals, and Crinetics Pharmaceuticals.

5. KraneShares MSCI All China Health Care Index ETF (KURE) – US$95.29 Million in AUM

This February 2018 debut offers a different angle on the pharmaceutical opportunity by focusing on large- and mid-cap Chinese healthcare enterprises. Holding 50 securities weighted by market cap, this big pharma ETF provides exposure to BeOne Medicines, Jiangsu Hengrui Medicine, Innovent Biologics, WuXi Biologics, and Sino Biopharmaceutical—capturing growth in Asia’s burgeoning pharma sector.

Making Your Move

The pharmaceutical sector’s projected expansion to US$1.75 trillion makes it increasingly attractive for portfolio construction. Whether you’re drawn to the concentrated approach of PPH or prefer the geographic diversification of KURE, today’s big pharma ETF options cater to varied investor preferences and risk tolerances. Each fund offers distinct advantages depending on your investment timeline and exposure objectives within the healthcare landscape.