Short interest for iShares U.S. Pharmaceutical ETF gives investors a sense of the degree to which investors are betting on the decline of iShares U.S. Pharmaceutical ETF's stock. Short interest data is updated every two weeks.

iShares U.S. Pharmaceutical ETF (ARCA:IHE), Short Interest Report

iShares U.S. Pharmaceutical ETF

wall street ai11

Biotech

Equities

Large Cap

Market Summary

Mid Cap

REIT

Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

Health Care

Commodities

Small Cap

Econ #s

Federal Reserve

Markets

Tech

ETFs

Real Estate

AAUKF

COPX

SPDR Dow Jones Industrial Average ETF Trust

FILL

iShares Dow Jones US Broker Dealers Index Fund

iShares Dow Jones US Insurance Index Fund

iShares Dow Jones US Regional Banks Index Fund

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Dow Jones US Pharmaceuticals Index Fund

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Medical Devices Index Fund

ILIT

iShares Dow Jones US Aerospace & Defense Index Fund

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

iShares Dow Jones Transportation Average Index Fund

PAAS

PICK

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

iShares FTSE NAREIT Residential PLUS Capped Index Fund

RING

SLVP

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

iShares S&P Global Timber & Forestry Index Fund

WOOD

XLRE

Select Sector SPDR-Consumer Discretionary

Performance in April 2024: Utilities lead, real estate lags. S&amp;P 500, Nasdaq 100, Dow Jones Industrial Average, small-cap and large-cap indices all decline.

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

weight loss shutter2

Earnings

News

Price Target

General

CTLT

Zealand Pharma&#39;s drug showed positive results in 83% of patients in Phase 2 trials for MASH, heating up the race for new obesity drugs and pushing the company&#39;s shares 30% higher.

Eli Lilly, Novo Nordisk&#39;s Strategies Against New Weight-Loss Drug Competitors

2024.Businessman.Shutterstock

Analyst Color

Macro Economic Events

Bonds

Treasuries

Economics

Analyst Ratings

AAPL

NVDA

Rydex ETF Trust Rydex S&P Equal Weight ETF

Bank of America lists 10 market surprises; warns investors to be wary of the bond market&#39;s dovish position compared to the Fed.

Bank Of America Predicts 10 2024 Market Surprises: From Booming IPOs To Japanese Equity Surge

iHeartMedia Inc

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

The race for new drugs to fight obesity and associated diabetes and cardiovascular diseases heated up on Monday after positive results from trials by Zealand Pharma were published, pushing the <a href="https://www.benzinga.com/topic/weight-loss">Danish company&#8217;s shares 30% higher</a>.
Zealand Pharma&#8217;s survodutide drug showed positive results in 83% of patients in Phase 2 trials being tested for a liver disease caused by excess fat cells called MASH, the company <a href="https://www.zealandpharma.com/media/zealand-news/">announced</a> on Monday.
&#8220;Survodutide has demonstrated efficacy in people with obesity, and statistically significant results in MASH suggest the potential to lead to clinically meaningful benefits across the cardiovascular, renal, and metabolic spectrum,&#8221; the announcement said.
The blockbuster impact of drugs such as Novo Nordisk&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) Ozempic and Eli Lilly And Company&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) Mounjaro, have driven dozens of companies to research and develop rival weight-loss treatments and further announcements of breakthroughs in the fast-developing market are expected in 2024. 
<h2 class="wp-block-heading">Impact Of Weight-Loss Drugs On Q4 Results</h2>
Currently, they are the main two players. Thanks to its Mounjaro and Zepbound treatments, Eli Lilly crushed analysts estimates for fourth-quarter earnings, <a href="https://www.benzinga.com/markets/equities/24/02/36955955/eli-lilly-soars-on-diabetes-and-obesity-drug-boom-projects-20-revenue-increase-in-2024">reported</a> earlier this month, with a 19% increase in earnings per share to $2.49, beating Street expectations of $2.22.
Upgrades soon followed with analysts from Cantor Fitzgerald and Morgan Stanley raising their price targets on the stock.
Novo Nordisk&#8217;s <a href="https://www.benzinga.com/general/biotech/24/01/36865688/with-bumper-33b-sales-novo-nordisk-forecasts-double-digit-2024-earnings-growth-boosts-lower-dose-">results</a> were similarly impressive, with its Wegovy and Ozempic offerings helping fourth-quarter sales to soar 37% to $9.5 billion, compared with expectations of $8.82 billion.
<h2 class="wp-block-heading">Market To Become More Crowded</h2>
Health and medical information research company Stat, <a href="https://www.statnews.com/2023/09/12/obesity-weight-loss-mounjaro-drug-development/">suggests</a> that around 70 weight loss drugs are currently in development to catch the exploding market — including from large and well-established pharma companies such as AstraZeneca Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>) and Pfizer Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>).
This suggests the early runners, Novo Nordisk and Eli Lilly, will find the space becoming more crowded in the months to come as many newly-developed treatments receive fast-track drug designations from global regulators.
How can they respond? They can certainly make hay while the sun shines — indeed, Novo recently <a href="https://www.benzinga.com/general/biotech/24/02/36931734/ozempic-maker-strikes-11b-deal-with-catalent-as-it-rushes-to-meet-massive-weight-loss-drug-demand">announced the acquisition</a> of Catalent Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTLT#NYSE">CTLT</a>), a New Jersey-based manufacturing facility, so that it can scale up production of Wegovy and Ozempic within their biggest market.
Meanwhile, Eli Lilly has turned its focus to the marketing side of its blockbuster treatments, announcing in January the launch of a new digital health-care platform, LillyDirect, that will offer drugs directly to consumers who have been prescribed the medications. 
Shares in both Novo and Eli Lilly have outperformed broader measures of pharmaceutical stocks. Novo is up 19% so far this year, while Eli Lilly has gained 33%.
The iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>), an exchange traded fund that tracks U.S. pharma companies, is up 12.5% in 2024.
Now Read: <a href="https://www.benzinga.com/markets/equities/24/02/37312557/hallelujah-for-shale-why-warren-buffett-likes-american-oil-companies">&#8216;Hallelujah&#8217; For Shale: Why Warren Buffett Likes American Oil Companies</a>
Photo: Shutterstock

Eli Lilly, Novo Nordisk's Strategies Against New Weight-Loss Drug Competitors

The fastest easing of financial conditions in history could leave markets offsides if the expected ideal economic scenario fails to materialize, Bank of America warned in a note released on Tuesday.
The bank&#8217;s analysts observed that investors recently adopted a conflicting stance, anticipating more than five Federal Reserve rate cuts and maintaining an excessively <a href="https://www.benzinga.com/topic/inflation">optimistic view on inflation.</a>
Bank of America advised investors to be wary of the bond market&#8217;s relatively dovish position compared to the Federal Reserve. It also raised concerns that Federal Reserve rate cuts in the current year might perpetuate inflationary pressures.
Here are 10 surprises that could affect markets in 2024, according to the bank&#8217;s latest Research Investment Committee (RIC) report: 
<ol>
<li>High Bond Taxes Shifting Focus to Stocks: Investors, initially drawn to the allure of 5% yields in Treasury securities, might pivot to equities due to favorable tax treatments. BofA notes the distinction between a 37% tax on Treasury coupon payments and a 20% tax on long-term stock holdings. </li>
<li>Stable Corporate Landscape Despite 5% Rates: Despite higher default rates, the robustness of corporate debt structures, alongside substantial cash reserves and private credit availability, suggests a low likelihood of a widespread bankruptcy wave. </li>
<li>IPO Market Set for a Comeback: After a sluggish 2023, favorable macroeconomic conditions and interest rate cuts could rejuvenate the IPO market, benefiting large banks, as tracked by the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), and exchanges. </li>
<li>Japan: The Dark Horse of Developed Markets: Masashi Akutsu, BofA&#8217;s Strategist, predicts a 13% upside for Japanese equities, monitored through the iShares MSCI Japan Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>), driven by corporate reforms and attractive valuations compared to U.S. stocks. </li>
<li>Geopolitical Risks Weighing on Tech Giants: The reliance of major tech firms like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) on Taiwanese chipmakers aligns their performance closely with Taiwan Semiconductor Manufacturing Company Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>). Amid rising geopolitical risks in the region, BofA suggests a shift to more balanced equity indices, such as the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>). </li>
<li>Biotech and Pharma Poised for Growth: Following a 2023 dominated by weigh-loss drugmakers, advancements in Alzheimer&#8217;s research could propel the pharmaceutical sector, as tracked via the iShares U.S. Pharmaceutical ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>), to new heights. </li>
<li>Rationalizing Energy Investments: With renewable energy stocks underperforming, investors might turn to more traditional energy sources, recognizing the value in undervalued oil, gas, and nuclear sectors. </li>
<li>The Fragile Path to Low Inflation: Market consensus for a smooth inflation reduction could be upended by various global events, potentially leading to higher inflation scenarios. BofA warns that <a href="https://www.benzinga.com/economics/macro-economic-events/24/01/36451978/wti-crude-oil-prices-soar-on-new-years-kickoff-as-tensions-escalate-in-red-sea-be">disruptions in the Red Sea</a> represent a dangerous threat to the inflation&#8217;s perfect landing scenario that markets are pricing in. </li>
<li>Demand for Premium on Government Debt: Fading confidence in the U.S. government&#8217;s budget sustainability might lead investors to seek higher yields for long-term government bonds. </li>
<li>Renewed Affection for Free Markets: As regulatory burdens remain high, the upcoming U.S. election could spark hopes for a more business-friendly environment, boosting investor confidence in equities.</li>
</ol>
Read Now: <a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36557192/el-salvadors-bitcoin-bet-pays-off-sovereign-bonds-skyrocket-200-challenging-imfs-warnings">El Salvador&#8217;s Bitcoin Bet Pays Off, Sovereign Bonds Skyrocket 200%, Challenging IMF&#8217;s Warning</a>

In a recent surge of labor unrest, pharmacy employees from CVS Health Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvs#NYSE">CVS</a>) and Walgreens Boots Alliance, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wba#NASDAQ">WBA</a>) raised&nbsp;their voices by calling out sick or walking out entirely last week.
What Happened: These&nbsp;actions were&nbsp;a protest against what they described as insufficient staffing and escalating job demands, which they believed are compromising the safety of their work environment.
The grassroots movement, known on social media as &quot;Pharmageddon,&quot;&nbsp;is part of a more significant wave of worker activism that has impacted&nbsp;sectors like automotive manufacturing and entertainment.
The protests were&nbsp;primarily driven by nonunion workers and have reportedly affected several pharmacy&nbsp;locations, as <a href="https://www.nytimes.com/2023/11/01/business/cvs-walgreens-pharmacy-workers-protest.html">reported </a>by The New York Times.&nbsp;
Expressing solidarity with the movement, Bled Tanoe, a pharmacist based in Oklahoma City, told the newspaper that she has been&nbsp;actively disseminating information about the walkouts.
Ms. Tanoe, who previously worked for Walgreens and is now employed by a hospital, shared her concerns about the pharmacy chains&#39; longstanding push for increased efficiency at the cost of patient care.
&quot;Pharmacies are not OK,&quot; Ms. Tanoe&nbsp;told The New York Times,&nbsp;emphasizing the potential risks customers face due to the current pressures on pharmacy staff.
While the full scope of the protests is complex to gauge without a union&#39;s coordination, Shane Jerominski has orchestrated actions through his Facebook page&nbsp;The Accidental Pharmacist, the newspaper noted. He reported that a significant number of stores were understaffed&nbsp;and that&nbsp;various pharmacy outlets across states such as New York and Illinois were temporarily closed.&nbsp;
Also Read:&nbsp;<a href="https://www.benzinga.com/pressreleases/23/10/b35527651/biotek-remedys-shines-a-spotlight-on-pharmacists-for-national-pharmacy-week">BioTek reMEDys Shines a Spotlight on Pharmacists for National Pharmacy Week</a>
In response to the protests, Walgreens and CVS&nbsp;minimized their impact, with the latter affirming that its operations have continued without notable disruptions, according to the newspaper.&nbsp;
Rite Aid Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rad#NYSE">RAD</a>) also stated that it was &ldquo;unaware of plans by our pharmacists to participate in this activity.&rdquo;
Pharmacy workers have been assembling online, particularly on Facebook and Reddit, to organize and advocate for improved staffing, compensation&nbsp;and consistent hours for pharmacy technicians. A previous walkout by CVS pharmacists in Missouri partly inspired this collective action.
According to the report, Rebecca Kolins Givan, an associate professor at Rutgers University, pointed&nbsp;out that these issues are symptomatic of a larger trend within healthcare, where profit motives often lead to reduced staffing, resulting in a cycle of worker dissatisfaction and high turnover rates.
In response to the unrest, CVS said it has&nbsp;committed to targeted investments to address these concerns, focusing on scheduling flexibility, recruitment,and training. Walgreens also said it has&nbsp;committed to improving pharmacists&#39; work experiences and &quot;advancing the profession.&quot;
This period of labor protest&nbsp;marks a critical point for workers&#39; rights within the healthcare industry.&nbsp;
Related stocks in the pharmaceutical <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a>, such as Pfizer Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>), may also be impacted by the broader implications of these protests.
Additionally, ETFs like the Health Care Select Sector SPDR Fund (NYSEARCA: XLV) and the iShares U.S. Pharmaceuticals ETF (NYSEARCA: IHE) could see investor sentiment shift as the industry responds to these labor challenges.
Now Read:&nbsp;<a href="https://www.benzinga.com/pressreleases/23/10/35146504/navigating-the-pharmacy-automation-market-trends-and-insights">Navigating the Pharmacy Automation Market: Trends and Insights</a>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Pharmacy Workers Strike At CVS and Walgreens, Echoing Wider Pharma Sector Unrest

The 2022 election was held on Tuesday, Nov. 8. No decision has been made as to who won many of the key battles, including several pivotal seats in the U.S. House of Representatives and U.S. Senate. Here&rsquo;s a look at the latest news and some ETFs that could see wide swings <a href="https://www.benzinga.com/news/22/11/29630414/midterm-results-no-red-wave-in-sight-as-democrats-republicans-fight-out-tight-contests">on the heels of the election</a>.
What Happened: The Democrat party has held a majority in the House of Representatives, and an often tie-breaking lead in the Senate, along with&nbsp;a Democrat president in Joe Biden.
Some financial analysts <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/11/29597625/morgan-stanley-says-the-us-midterm-elections-could-spark-a-rally-in-stocks-heres-ho">have pointed to</a> the positives that could be seen for the market with gridlock and a Republican-led Congress challenging a Democratic president.
At the time of writing, the Associated Press <a href="https://apnews.com/article/2022-midterm-elections-results-954de3200a5467d36ea5f04e4ccbb78f">has </a>called 376 of the 435 seats in the House of Representatives, with 175 Democrats and 201 Republicans. A total of 218 are&nbsp;needed to have a majority. Prior to the 2022 election, the House had 212 Republicans and 220 Democrats.
Related Link: <a href="https://www.benzinga.com/news/22/11/29599251/14-stocks-to-watch-if-donald-trump-announces-2024-presidential-bid-6-for-now-8-for-later">14 Stocks To Watch If Donald Trump Announces 2024 Presidential Bid&nbsp;</a>
ETFs to Watch: <a href="https://www.benzinga.com/money/what-is-an-etf">Exchange traded funds </a>can offer investors exposure to sectors or ideologies with a basket of stocks, instead of investing in just one or two stocks. With the potential of the political makeup of Congress changing, several sectors could be impacted and could offer ideas for ETFs.
The Point Bridge America First ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/maga#BATS">MAGA</a>) was <a href="https://www.benzinga.com/news/20/10/18061030/what-happens-to-the-maga-etf-if-trump-loses-the-presidential-election">launched in 2017</a> and offers exposure to the Republican side of the political spectrum. The ETF <a href="https://www.pointbridgecapital.com/about/">tracks </a>companies in the S&amp;P 500 that make donations to the Republican Party. While not all these companies would stand to benefit from a Republican-led Congress, the ETF is often linked to positive news for the Republican Party or former President Donald Trump. The ETF has the ticker MAGA, which coincides with Trump&rsquo;s acronym &ldquo;Make America Great Again,&rdquo; which was a slogan and rallying cry for Trump in the 2016 and 2020 presidential elections.
The ETF holds 150 stocks and has $15 million in assets under management. The ETF has <a href="https://etfdb.com/etf/MAGA/">returns </a>of -0.6%, +43.7%&nbsp;and +57.4% over the last one year, three years, and five years respectively.
Similar to the America First ETF, the God Bless America ETF (ARCA:YALL) is an ETF that focuses on one side of the political spectrum. The ETF, launched in October 2022, screens out companies that are considered left-leaning&nbsp;politically&nbsp;or have &ldquo;liberal political activism and social agendas.&rdquo; The ETF invests in U.S.-listed companies from various sectors and has $24.2 million in assets under management. The ETF is actively managed.
The iShares Global Clean Energy ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/icln#NASDAQ">ICLN</a>) is an ETF that could be favored by investors if the Democrats keep control of the House and Senate and could see declines of several components under a gridlocked Congress not focused on passing clean energy initiatives. The ETF invests in the clean energy sector.
The ETF has 100 holdings and has $4.9 billion in assets under management. It has returned -10.7%, +21.8% and +18.0% over the last one year, three years and five years respectively.
Like the iShares Global Clean Energy ETF, the Invesco Solar ETF (ARCA:TAN) could benefit from the Democrats keeping control and could see pressure with a Republican-led Congress. The Invesco Solar ETF invests in companies in the solar energy sector on a global scale.
The ETF was launched in 2008 and now has 53 holdings with&nbsp;$2.2 billion in assets under management. The ETF has returns of -27.9%, +6.6% and +25.1% over the last one year, three years, and five years respectively.
Two sectors that could benefit from&nbsp;Republicans leading Congress could be healthcare and pharmaceuticals. Republicans have been&nbsp;against healthcare-for-all initiatives, and haven&#39;t been particularly vocal&nbsp;on cutting drug costs for Americans. The iShares U.S. Pharmaceuticals ETF (ARCA:IHE) was launched in 2006 and holds 43 stocks.
The ETF has $412 million in assets under management,&nbsp;returning&nbsp;-6.2%, +31.3% and +29.0% over the last one year, three years and five years respectively.
What&rsquo;s Next: It could be days before several of the most anticipated election races are decided. Investors will have to wait until it is known which political party has control of Congress and how big of an impact it could have on getting bills passed in the coming two years.
The potential of&nbsp;Trump&nbsp;launching a 2024 presidential campaign and Florida Governor Ron DeSantis announcing an intent to run could also impact many ETFs. Trump and DeSantis are seen as front-runners to become&nbsp;the Republican Party nominee&nbsp;<a href="https://www.benzinga.com/news/22/11/29629422/trump-warns-freshly-re-elected-governor-desantis-against-running-for-president-in-2024-he-could-hurt">in the upcoming&nbsp;election</a>.
Read Next: <a href="https://www.benzinga.com/government/22/11/29597514/control-of-congress-up-for-grabs-in-midterms-12-stocks-to-watch">Control Of Congress Up For Grabs In Midterms, 12 Stocks To Watch&nbsp;</a>
Photo: Courtesy of shutterstock.com

Politics

Trading Ideas

iShares S&P Global Clean Energy Index Fund

ICLN

MAGA

YALL

5 ETFs To Watch After 2022 Midterm Elections: Which Sectors Win From Republican Or Democrat Majority?

Media

iShares Trust Dow Jones US Healthcare Sector Index Fund

From Sohn Conference: Larry Robbins Recommends Shorting A Pharma ETF, But Doesn't Specifically Mention 1 ETF; BZ NOTE: The SPDR S&P Pharma ETF Is Ticker 'XPH'

Total earnings for <a href="https://www.zacks.com/ZER/zer_get_pdf.php?r=H0170834233&amp;ADID=ZP_Article_EarningsTrends">95.3%</a> of the total healthcare market capitalization are up 7.6% on revenue growth of 4.6%. Though earnings growth appears solid compared with many other sectors, earnings and revenue beat ratios of 72.5% and 58.8%, respectively, look disappointing.
	Among the most notable players, Johnson &amp; Johnson JNJ was the first major drug company to report earnings on Oct 17, followed by Eli Lilly and Company LLY and Bristol-Myers Squibb Company BMY on Oct 24 and Oct 26, respectively. Two other major U.S. drug companies, Merck MRK and Pfizer PFE, reported on Oct 27 and Oct 31, respectively. These industry primes posted solid results with either earnings or revenue beats or both.
	Johnson and Johnson Earnings in Focus
	The world&#39;s biggest maker of healthcare products continued its long streak of earnings beat. Earnings per share came in at $1.90, 10 cents ahead of the Zacks Consensus Estimate and 13.1% higher than the year-ago quarter. Revenues grew 10.3% year over year to $19.65 billion and edged past the Zacks Consensus Estimate of $19.28 billion. Johnson &amp; Johnson raised its full-year earnings per share guidance to $7.25-$7.30 from $7.12-$7.22 and revenue guidance to $76.1-$76.5 billion from $75.8-$76.1 billion (read: <a href="https://www.zacks.com/stock/news/279372/healthcare-etfs-in-focus-on-johnson-amp-johnson-q3-earnings">Healthcare ETFs in Focus on Johnson &amp; Johnson Q3 Earnings</a>).
	Pfizer Earnings in Focus
	The U.S. drug giant came up with an earnings beat and in-line revenues. Earnings per share of 67 cents came in a couple of cents above the Zacks Consensus Estimate while revenues of $13.7 billion were in line with the estimate of $13.17 billion. On a year-over-year basis, earnings per share and revenues rose 10% and 1%, respectively. For 2017, Pfizer narrowed the revenue guidance range to $52.4-$53.1 billion from $52-$54 billion while raised the earnings per share guidance range to $2.58-$2.62 from $2.54-$2.60.
	Merck Earnings in Focus
	Merck beat the earnings estimate while missed on revenues. Earnings per share came in at $1.11, surpassing the Zacks Consensus Estimate of $1.03 and improving 3.7% from the year-ago quarter. Revenues declined 2% year over year to $10.33 billion and were below the Zacks Consensus Estimate of $10.51 billion. Merck raised its revenue guidance to $40-$40.5 billion from $39.4-$40.4 billion and earnings per share guidance to $3.91-$3.97 from $3.76-$3.88 for this year.
	Bristol-Myers Earnings in Focus
	Bristol-Myers missed on earnings while beats on revenues. It reported earnings per share of 75 cents, a couple of cents below the estimate. Revenues grew 7.1% to $5.25 billion and edged past the Zacks Consensus Estimate of $5.19 billion. The company raised its earnings per share guidance to $2.95-$3.05 from $2.90-$3.00 (see: <a href="https://www.zacks.com/funds/etfs/etf-categories/Health-Care-ETFs-13">all the Healthcare ETFs here</a>).
	Eli Lilly Earnings in Focus
	Eli Lilly topped the Zacks Consensus Estimate on both fronts. Earnings of $1.05 outpaced the Zacks Consensus Estimate by couple of cents and came in 19% higher than the year-ago quarter. Revenues grew 9% to $5.66 billion and beat the $5.52-billion estimate. Like other drug makers, Eli Lilly also raised its 2017 revenue and earnings guidance. It now expects revenues in the range of $22.4-$22.7 billion compared with the previous expectation of $22.0-$22.5 billion and earnings per share in the range of $4.15-$4.25 versus $4.10-$4.20 expected previously.
	ETF Angle
	The string of earnings beat failed to boost pharma ETFs as they saw rough trading over the past one month. Below, we have highlighted these in detail. These funds have a Zacks ETF Rank #3 (Hold) with a High risk outlook:
	PowerShares Dynamic Pharmaceuticals Fund PJP
	This is by far the most popular choice in the pharma space that follows the Dynamic Pharmaceuticals Intellidex Index. The product has AUM of about $663.7 million and sees a lower volume of around 52,000 shares a day. The fund charges 56 bps in fees and expenses. Holding 30 stocks, the fund invests around 22.8% share in the in-focus five firms. The ETF has lost 6% in a month.
	iShares U.S. Pharmaceuticals ETF IHE
	This ETF provides exposure to 42 pharma stocks by tracking the Dow Jones U.S. Select Pharmaceuticals Index. The in-focus firms are the top five holdings in the basket accounting for a combined 40.3% of total assets, suggesting heavy concentration. The product has $594.5 million in AUM and charges 44 bps in fees and expense. Volume is light as it exchanges about 19,000 shares a day. The fund has shed 6% in a month (read: <a href="https://www.zacks.com/stock/news/282089/what-lies-in-store-for-pharma-etfs">What Lies in Store for Pharma ETFs?</a>).
	SPDR S&amp;P Pharmaceuticals ETF XPH
	This fund provides exposure to the pharma companies by tracking the S&amp;P Pharmaceuticals Select Industry Index. With AUM of $396.6 million, it trades in a good volume of around 90,000 shares a day and charges 35 bps in fees a year. In total, the product holds 39 securities with the in-focus five firms taking nearly 5% share each. The product was down 7% in the same period.
	VanEck Vectors Pharmaceutical ETF PPH
	This ETF follows the MVIS US Listed Pharmaceutical 25 Index and holds 26 stocks in its basket. Johnson &amp; Johnson, Pfizer, Bristol-Myers, and Eli Lilly accounts for at least 5% share each while Merck makes up for 4.4% of assets. The product has amassed $262.4 million in its asset base and trades in a moderate volume of about 67,000 shares a day. Expense ratio comes in at 0.35%. The fund has lost 5.9% in a month. 
	&nbsp;<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/pharma etf.jpg" style="width: 620px; height: 252px;" />
	Want key ETF info delivered straight to your inbox? 
	Zacks&#39; free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. <a href="https://www.zacks.com/registration/newsletter/?type=FND&amp;ADID=Zcom_commentary_fundnewsletter_moneysense_ECD_ETF">Get it free &gt;&gt;</a>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-282412" target="_blank">Click to get this free report</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=BMY&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-282412">Bristol-Myers Squibb Company (NYSE: </a><a class="ticker" href="/stock/bmy#NYSE">BMY</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=PFE&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-282412">Pfizer, Inc. (NYSE: </a><a class="ticker" href="/stock/pfe#NYSE">PFE</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=LLY&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-282412">Eli Lilly and Company (NYSE: </a><a class="ticker" href="/stock/lly#NYSE">LLY</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=JNJ&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-282412">Johnson &amp; Johnson (NYSE: </a><a class="ticker" href="/stock/jnj#NYSE">JNJ</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=MRK&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-282412">Merck &amp; Company, Inc. (NYSE: </a><a class="ticker" href="/stock/mrk#NYSE">MRK</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=PJP&amp;split=1&amp;cid=CS-BENZ-FT-282412">PWRSH-DYN PHARM (ETF:PJP): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=XPH&amp;split=1&amp;cid=CS-BENZ-FT-282412">SPDR-SP PHARMA (ETF:XPH): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=PPH&amp;split=1&amp;cid=CS-BENZ-FT-282412">VANECK-PHARMA (ETF:PPH): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=IHE&amp;split=1&amp;cid=CS-BENZ-FT-282412">ISHARS-US PHARM (ETF:IHE): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/stock/news/282412/pharma-etfs-down-post-q3-earnings?cid=CS-BENZ-FT-282412">To read this article on Zacks.com click here.</a> 
	&nbsp; 
	<a href="http://www.zacks.com/">Zacks Investment Research</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=ZACKS_PFP_7BEST_ETF">Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report</a>

Merrill Lynch Pharmaceutical HOLDRs Trust

Pharma ETFs Down Post Q3 Earnings

We are halfway through 2017 and pharma stocks have recovered nicely with their performance representing a sharp contrast to 2016 when the sector was under immense pressure due to the drug pricing issue. Another factor that weighed on pharma stocks last year was the noticeably lower number of FDA approvals. 2016 saw only 22 treatments gaining FDA approval, well below 45 approvals in 2015 and 41 in 2014. The industry was also hit by some high profile R&amp;D failures as well as mixed results, slower-than-expected new product launches and increasing competition.
&nbsp;
However, the sector has fared better this yearand the NYSE ARCA Pharmaceutical Index is up 10.1% year-to-date (YTD). New product sales ramp up, R&amp;D success and innovation, strong results, a higher number of FDA approvals and continued strong performance from legacy products are some of the factors that could contribute to a sustained recovery in the sector. Tax reforms and cash repatriation would support a recovery as well. (Read: <a href="https://www.zacks.com/stock/news/266090/forget-big-tech-biotech-etfs-are-soaring-higher">Forget Big Tech; Biotech ETFs are Soaring Higher</a>)
&nbsp;
Importantly, investors now seem to be more comfortable with the drug pricing scenario and are willing to look at the fundamentals of the sector. Although the drug pricing issue will remain a headwind this year as well, expectations are that steps taken by the Trump administration to drive down drug prices will not be as draconian as previously expected.&nbsp;
&nbsp;
Deregulation and increased competition seem to be some of the ways that will be used to control drug prices. FDA Commissioner Scott Gottlieb recently said that the agency is working on a plan to lower healthcare costs by speeding up the development of next-generation treatments, especially for rare diseases or targeted cancer therapies.
&nbsp;
Faster Drug Approval Process?
&nbsp;
At a meeting with pharma majors earlier this year, President Trump spoke about speeding up the FDA approval process. The President said that the FDA will be streamlined and the drug approval process will be much faster. The 21st Century Cures Act is a step in this direction.
&nbsp;
With the passing of this Act, expectations are that there will be more innovation in the sector and, maybe, a surge in new drug approvals. According to an IMSQuintiles report, the late-phase R&amp;D pipeline for the industry indicates that there should be about 40-45 new brand launches every year through 2021.
&nbsp;
Meanwhile, the FDA has already surpassed last year&#39;s total tally with 23 drugs being approved so far in 2017. &nbsp;(Read: <a href="https://www.zacks.com/stock/news/266846/how-to-build-a-winning-etf-portfolio-for-secondhalf-2017">How to Build a Winning ETF Portfolio for Second-Half 2017</a>)
&nbsp;
Will M&amp;As Pick Pace?
&nbsp;
There has been a lot of consolidation in the pharma industry over the last few years with quite a few deals being announced/completed in 2016. Expectations are high that M&amp;As will increase as the year progresses -- potential tax reform and cash repatriation are expected to lead to a boost in this area. While not too many deals have been announced so far in 2017, we could see several M&amp;A agreements being announced in the coming quarters though companies are wary of bidding wars leading to over-priced deals.
&nbsp;
Companies with innovative technologies and pipelines are highly sought after. Niche disease areas like nonalcoholic steatohepatitis (NASH), immuno-oncology and multiple sclerosis are in demand. Treatments for orphan diseases are also much sought after with quite a few deals being signed in these areas. (Read: <a href="https://www.zacks.com/stock/news/266243/best-leveraged-etfs-of-first-half-of-2017">Best Leveraged ETFs of First Half of 2017</a>)
&nbsp;
Innovative Pipelines &amp; Catalyst Rich 2017 
&nbsp;
Pharma companies continue to work on bringing innovative new treatments to market, and there could be significant catalysts in the coming quarters in the form of important new product approvals as well as major data read-outs especially in key therapeutic areas like immuno-oncology, Alzheimer&#39;s, central nervous system disorders, and immunology/inflammation.
&nbsp;
Cancer remains a key focus area. According to IMSQuintiles, 68 new cancer drugs were approved for 22 indications from 2011 to 2016 while worldwide costs for cancer therapeutics and supportive care drugs shot up from $91 billion in 2012 to $113 billion in 2016. More than 600 molecules are in late stage development with the majority being targeted therapy.
&nbsp;
Meanwhile, sales of products that gained approval over the last two years as well as line extensions should ramp up and boost growth.
&nbsp;
Pharma ETFs in Focus
&nbsp;
Highlighted below are some pharma ETFs - ETFs present a low-cost and convenient way to get a diversified exposure to the sector.
&nbsp;
Powershares Dynamic Pharmaceuticals ETF (ETF:PJP)
&nbsp;
PJP, launched in Jun 2005 by Invesco PowerShares, tracks the Dynamic Pharmaceuticals Intellidex Index. The fund covers healthcare stocks. The top 3 holdings include Celgene Corporation (5.24%), Amgen Inc. (5.14%) and AbbVie Inc. (5.01%). The total assets of the fund as of Jul 6, 2017 were $742.1 million representing 30 holdings. The fund&#39;s expense ratio is 0.57% while dividend yield is 0.81%. The trading volume is roughly 53,041 shares per day.
&nbsp;
SPDR S&amp;P Pharmaceuticals ETF (ETF:XPH)
&nbsp;
XPH, launched inJun 2006, tracks the S&amp;P Pharmaceuticals Select Industry Index. This ETF primarily covers pharma stocks with the top 3 holdings being Akorn, Inc. (5.27%), Jazz Pharmaceuticals plc (5.19%), and Endo International, plc (4.7%).
&nbsp;
Total assets as of Jul 6, 2017 were $458.5 million representing 38 holdings. The fund&#39;s expense ratio is 0.35% and dividend yield is 0.62%.The trading volume is roughly 58,019 shares per day.
&nbsp;
iShares U.S. Pharmaceuticals (ETF:IHE)
&nbsp;
IHE, launched in May 2006, seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Pharmaceuticals Index. The fund mainly consists of pharma companies (89.8%). Biotech companies account for about 10.1% of the fund.
&nbsp;
The top 3 holdings of this fund are Johnson &amp; Johnson (9.95%), Pfizer Inc. (8.21%) and Merck &amp; Co. Inc. (7.58%). The total assets of the fund as of Jul 6, 2017 were $693.7 million representing 41 holdings. The fund&#39;s expense ratio is 0.44% with the dividend yield being 1.25%. The trading volume is roughly 19,527 shares per day.
&nbsp;
Market Vectors Pharmaceutical (ETF:PPH)
&nbsp;
PPH was launched in Dec 2011 and tracks the Market Vectors U.S. Listed Pharmaceutical 25 Index. This ETF covers healthcare stocks. While the expense ratio is 0.35%, dividend yield is 1.95%. The trading volume is roughly 39,357 shares per day. The total assets of the fund as of Jul 6, 2017 were $276.8 million representing 26 holdings. The top 3 holdings of this fund are Johnson &amp; Johnson (8.63%), Novartis AG (6.4%) and AbbVie Inc. (5.17%).
&nbsp;
Conclusion
&nbsp;
Although fears regarding the drug pricing issue have waned, it will nevertheless remain a headwind until the Trump administration comes out with a policy for controlling drug prices. Meanwhile, increased pipeline visibility and appropriate utilization of cash should increase confidence in the sector.
&nbsp;
Want key ETF info delivered straight to your inbox?
	Zacks&#39; free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.&nbsp;<a href="https://www.zacks.com/registration/newsletter/?type=FND&amp;ADID=Zcom_commentary_fundnewsletter_moneysense_ECD_ETF">Get it free &gt;&gt;</a>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-267023" target="_blank">Click to get this free report</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=PJP&amp;split=1&amp;cid=CS-BENZ-FT-267023">PWRSH-DYN PHARM (ETF:PJP): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=XPH&amp;split=1&amp;cid=CS-BENZ-FT-267023">SPDR-SP PHARMA (ETF:XPH): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=PPH&amp;split=1&amp;cid=CS-BENZ-FT-267023">VANECK-PHARMA (ETF:PPH): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=IHE&amp;split=1&amp;cid=CS-BENZ-FT-267023">ISHARS-US PHARM (ETF:IHE): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/stock/news/267023/what-lies-ahead-for-pharma-etfs-in-second-half-2017?cid=CS-BENZ-FT-267023">To read this article on Zacks.com click here.</a> 
	&nbsp; 
	<a href="http://www.zacks.com/">Zacks Investment Research</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=ZACKS_PFP_7BEST_ETF">Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report</a>

What Lies Ahead For Pharma ETFs In Second Half 2017

After being the worst-performing sector in the S&amp;P 500 last year, healthcare is rebounding nicely in 2017. With broader measures of the healthcare sector up about 9 percent year-to-date, however, investors should be selective when searching the sector for value opportunities.
Of course, there are policy concerns <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/03/9177808/that-was-fast-healthcare-etf-races-to-new-highs">for the healthcare sector</a>, not the least of which include the effort to repeal the Affordable Care Act. However, the Republican effort to rollback the ACA could take months or even drag into next year. With 2018 being a mid-term election year, the idea could take a backseat as politicians seek reelection.
In the meantime, healthcare is underowned by professional investors.
The broader healthcare sector is attractively valued relative to broader gauges of global equities, but investors can find compelling value with industry exchange traded funds such as the iShares U.S. Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>).
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/03/9132622/oppenheimer-bullish-on-entire-biotech-sector">Oppenheimer Bullish On Entire Biotech Sector</a>
&ldquo;Is health care a buy? We think a selective approach is appropriate,&rdquo; BlackRock said <a href="https://www.blackrockblog.com/2017/04/03/health-care-stocks/">in a recent note</a>. &ldquo;Health care has a lower stock correlation than other sectors, reflecting variations in innovation cycles, drug patents and pipelines. That dynamic reinforces the importance of selecting winners and avoiding losers.&rdquo;
The $714.4 million IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index and holds 40 stocks. IHE devotes about 26 percent of its combined weight to Dow components Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Merck &amp; Co. (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>).
&ldquo;Health care stocks have historically traded at a premium to the broader equity market, partly reflecting their growth characteristics and popularity as a source of income,&rdquo; said BlackRock. &ldquo;Yet today some sub-industries such as biotech sell at a discount. Many trade near the bottom of their historical valuation range.&rdquo;
Like the broader healthcare sector, pharmaceuticals stocks currently sport valuations against global equities that are <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/02/8993826/a-bull-call-on-a-marquee-healthcare-etf">at the lower end of historical averages</a>. The same is true of biotechnology stocks. The iShares Nasdaq Biotechnology ETF (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>), the largest biotech ETF, is up almost 10 percent year-to-date.
Healthcare, the S&amp;P 500&#39;s third-largest sector weight, is one of just three sectors expected to trade at a discount to the benchmark U.S. equity gauge this year.

Long Ideas

There Is Value To Be Had With The Right Healthcare ETFs

Pharmaceutical investors could breathe a sigh of relief after <a href="http://www.benzinga.com/topic/donald-trump">Donald Trump</a> won the race to the White House, at least according to <a href="http://www.benzinga.com/topic/alex-arfaei">Alex Arfaei</a> of BMO Capital Markets.
Arfaei commented in a research report on Wednesday that a Trump presidency, coupled with a Republican Congress and the apparent defeat of <a href="http://www.cnbc.com/2016/11/07/californias-very-expensive-drug-price-battle-prop-61-fight-gets-even-nastier.html">Proposition 61 in California</a> are all factors that support the pharmaceutical industry.
Arfaei continued that the pharmaceutical space will be characterized by the following:
<ol>
<li>Lower drug pricing pressures.</li>
<li>The potential repeal of the Affordable Care Act ("Obamacare") with more industry friendly reforms.</li>
<li>Increased probability of lower corporate tax rates.</li>
<li>Profit repatriation.</li>
</ol>
<h3>Drug Pricing Pressures</h3>
Hillary Clinton campaigned on targeting drug prices, but her defeat in the election now makes her proposals much less likely.
<h3>Obamacare</h3>
Trump campaigned to repeal Obamacare and replace it with reforms that follow free market principles.
While the Republicans may or may not be successful in actually repealing Obamacare &mdash; and it is uncertain what it would be replaced with &mdash; chances are likely it will be replaced with reforms that are friendly to the pharmaceutical industry.
<h3>Corporate Tax Rates</h3>
The analyst views Trump&#39;s plans to lower corporate tax rates from 35 percent to 15 percent as being favorable for the pharmaceutical industry. In addition, Trump&#39;s proposals of allowing companies to repatriate foreign cash at a one-time 10 percent tax rate will result in increased capital returns to shareholders through dividends and share buybacks.
<h3>Top Pick</h3>
Arfaei concluded that the U.S. election should be viewed as positive for the entire pharmaceutical universe, particularly for Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>).
<h3>At Last Check ...</h3>
<ul>
<li>iShares Dow Jones US Pharm Indx (ETF) (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>) was up 5.5 percent at $143.29.</li>
<li>iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) is up 7.47 percent at $281.16.</li>
<li>Pfizer was up 6.33 percent at $31.90.</li>
<li>SPDR S&amp;P Biotech (ETF) (NYSE: <a class="ticker" href="/stock/xbi#NYSE">XBI</a>) was up 8.31 percent at $62.59.</li>
<li>SPDR S&amp;P Pharmaceuticals (ETF) (NYSE: <a class="ticker" href="/stock/xph#NYSE">XPH</a>) was up 5.31 percent at $40.23.</li>
</ul>

Legal

Movers

Last Night's Election - A Series Of Fortunate Events For Big Pharma

Some investors know about the &ldquo;Dogs of the Dow&rdquo; strategy, which advocates buying the 10 highest-yielding of the blue-chip index at the end of the year and hold those names for a year.
Historical data suggest <a href="http://www.cnbc.com/2015/12/22/this-timeless-strategy-could-work-in-2016-technician.html">the strategy works</a>. So, with the fourth quarter here, now may be a good time for investors to consider some dogs among exchange-traded funds.
In a recent research note, BlackRock, Inc. (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>), parent company of iShares, the world&#39;s largest ETF issuer, examines <a href="https://www.blackrock.com/investing/insights/equities/opportunities-in-etf-losers">an ETF dogs strategy</a>.
<h3>Pedigree Lineup</h3>
Looking at the 25 worst-performing members of the expansive iShares lineup as of Sept. 30, investors will notice some obvious themes, notably the presence of ex-U.S. developed markets ETFs on the list of slack performers.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8299150/terms-of-the-trade-dogs-of-the-dow-investing-strategy">Terms Of The Trade: Dogs Of The Dow Investing Strategy</a></bzrelatedlink>
Sixteen (16) of the 25 ETFs on the BlackRock list are ex-U.S. developed markets funds. Underscoring the point that dollar weakness has been a major headwind for currency hedged ETFs this year, six of the 25 iShares dogs are currency hedged funds.
&ldquo;Because ETFs hold bundles of securities, you can still keep your focus narrow &mdash; there&#39;s an ETF for almost any market segment you can think of &mdash; while helping to diversify your risk,&rdquo; notes BlackRock. &ldquo;Finally, rather than automatically rebalancing once or twice a year, it&#39;s important to recognize that an ETF &#39;story&#39; may unfold over a different horizon &mdash; potentially demanding patience and fortitude.&rdquo;
<h3>Not Too Crowded In The Winners' Circle</h3>
Indeed, it could take a while for some ETF dogs to shed that ominous label while others have the potential to do so much faster. The iShares Nasdaq Biotechnology Index (ETF) (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) and the iShares Dow Jones US Pharm Indx (ETF) (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>), two of the 25 dogs, have been dragged lower by election year rhetoric, but as markets reconcile a likely victory by Hillary Clinton, the healthcare sector offers rebound potential.
<h3>Laggin', Draggin' Pups</h3>
At the other end of the spectrum, the iShares Currency Hedged MSCI Italy ETF (NYSE: <a class="ticker" href="/stock/hewi#NYSE">HEWI</a>) the worst-performing member of the iShares dogs list of September 30, likely has its work cut out for it after losing nearly 20 percent through the first nine months of the year.
Not only do currency hedged ETFs need the dollar to rise, but HEWI&#39;s dog status could prove harder to erase because of the fragility of Italy&#39;s banking and the massive debt burden facing the eurozone&#39;s fourth-largest economy. Those are significant problems that will take a long time, to put it delicately, to work through.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Short Ideas

Eurozone

Currency ETFs

Psychology

HEWI

Looking For ETF Dogs That Will Hunt

The strongest catalysts for a pharma stock are the various milestones on the road to FDA approval for new drugs. For new investors, they&rsquo;ll often see a stock rise astronomically, but, when they go to make sense of the reasons for the jump, they&rsquo;re greeted with unfamiliar acronyms.
Let&rsquo;s try to make some sense of them and the process a new drug goes through before approval.
<h3>Phase Trials</h3>
One news item that regularly affects the price of a stock is the different phase studies, of which there are three, aptly called Phase 1, Phase 2 and Phase 3.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/general/biotech/16/09/8500542/drug-price-bubble-a-result-of-decade-long-economic-policy-issues">Drug Price Bubble A Result Of Decade-Long Economic Policy Issues</a></bzrelatedlink>
<ul>
<li>Phase 1 is to determine the safety and dosage of a new drug. It typically takes several months. About 70 percent of drugs move past this Phase and onto the next, according to the FDA.</li>
<li>Phase 2 is to determine the efficacy and side effects of a new drug. This can take several months to two years. According to the FDA, about a third of drugs studied are able to make it past Phase 2 studies.</li>
<li>Phase 3 studies can take one to four years and are designed to determine the efficacy of the drug as well as monitoring the adverse reactions to the drug. According to the FDA, between 25 and 30 percent of new drugs are able to make it past Phase 3.</li>
</ul>
The milestones a drug hits as it passes through these three discrete phases often act as catalysts for the price of the company&rsquo;s stock, as well as the next step.
<h3>New Drug Application (NDA)</h3>
The company has enough information on its new drug to complete and submit a New Drug Application (NDA). Since 1938, every drug in United States hospitals and pharmacies has had a New Drug Application (NDA) submitted and approved.
According to the FDA, each NDA must show three things:
<ul>
<ol>
<li>The drug is &ldquo;safe and effective in its proposed uses,&rdquo; with the benefits outweighing the risks.</li>
<li>The labeling is appropriate and contains all necessary warnings, side effects and ingredients.</li>
<li>The manufacturing process and the &ldquo;controls used to maintain the drug&rsquo;s quality&rdquo; (i.e., capsules, packaging) are able to effectively preserve the drug&rsquo;s &ldquo;identity, strength and purity.&rdquo;</li>
</ol>
</ul>
&ldquo;The documentation required in an NDA is supposed to tell the drug&#39;s whole story,&rdquo; according to the FDA website, &ldquo;including what happened during the clinical tests, what the ingredients of the drug are, the results of the animal studies, how the drug behaves in the body, and how it is manufactured, processed and packaged.&rdquo;
<h3>PDUFA Panel</h3>
The Prescription Drug User Fee Act (PDUFA) was originally passed in 1992 with the purpose of providing greater funding for reviewers so that more applications could be reviewed. The acronym is most often heard in reference to PDUFA dates or the amount of time the FDA has to review an application and either approve or deny it &mdash; typically ten months.
Sometimes, the FDA will give a drug a priority designation, which brings the PDUFA date from ten months to six, essentially fast-tracking the process and shortening the amount of time before a drug can hit the market.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Education

GNRX

Getting Into The Drug Business: From NDAs To PDUFA Dates

Radio frequencies frequently emitted by cellphones can cause cancer, according to partial findings of a government study on rats, reported the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a>.
The National Toxicology Program (NTP) has carried out extensive toxicology and carcinogenesis <a href="http://biorxiv.org/content/early/2016/05/26/055699.full.pdf">studies of radiofrequency radiation (RFR)</a> in rats over multiple years. The studies involved observing the effects of frequencies and modulations found in the U.S. telecommunications industry on the rodents, paying particular attention to the potential of cancer-cell developments.
<h3>The Study</h3>
The peer-reviewed study found "the occurrences of two tumor types in male Harlan Sprague Dawley rats exposed to RFR (radiofrequency radiation), malignant gliomas in the brain and schwannomas of the heart," according to <a href="http://www.nbcnews.com/health/health-news/possible-cellphone-link-cancer-rat-study-launches-new-debate-n581621">the research team</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/16/05/8040684/astrazeneca-remains-committed-to-development-of-zs-9-despite-letter-from-fda">AstraZeneca Remains Committed To Development of ZS-9 Despite Letter From FDA</a></bzrelatedlink>
"Given the widespread global usage of mobile communications among users of all ages, even a very small increase in the incidence of disease resulting from exposure to [radio-frequency radiation] could have broad implications for public health," the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a> quoted a report of partial findings from the study.
Under these studies, rats and mice were exposed to radio-frequency "with two signal modulations [Code Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM)] at two frequencies (900 MHz for rats and 1900 MHz for mice)," the <a href="http://biorxiv.org/content/biorxiv/early/2016/05/26/055699.full.pdf">NTP</a> wrote.
The study also found that "the tumors in the brain and heart observed at low incidence in male rats exposed to GSM and CDMA-modulated cell phone RFR in this study are of a type similar to tumors observed in some epidemiology studies of cell phone use."
"All RF exposures were conducted over a period of approximately 18 hours using a continuous cycle of 10 minutes on (exposed) and 10 minutes off (not exposed), for a total daily exposure time of approximately 9 hours a day, 7 days/week," according to the study.
<h3>What Does It All Mean?</h3>
"Where people were saying there's no risk, I think this ends that kind of statement," the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a> report said, quoting Ron Melnick, who ran the NTP project until his retirement in 2009.
The Journal said, "It's not clear how the results may impact the government's cellphone safety recommendations."
"Scientific evidence always informs FCC rules on this matter," an FCC spokesman told the Journal. "We will continue to follow all recommendations from federal health and safety experts including whether the FCC should modify its current policies and RF exposure limits."

Wall Street Journal

BIIB

First Trust NYSE Arca Biotechnology Index Fund

iShares Trust S&P Global Healthcare Sector Index Fund

Government Study: Cellphone Radiation Linked To Cancer

Last week was an eventful one, but one that did produce big weekly moves in either direction for the major U.S. equity indexes.

	&quot;For October, all three major indexes posted their biggest percentage increases since October 2011, with the S&amp;P 500 rising 8.3 percent, led by energy and materials,&quot; <a href="http://finance.yahoo.com/news/stock-futures-higher-exxon-chevron-113240704.html?l=1">Reuters</a>&nbsp;reported.&nbsp;

	Translation: The Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) and the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) finished October with monthly gains of 10.9 percent and 12.2 percent, respectively. Let that sink for a minute because for as impressive as those showings were for XLE and XLB, those ETFs are still 10.4 percent year-to-date, making them two of the worst-performing sector SPDR ETFs. XLE is the worst with a 2015 loss of 14.1 percent.
<h3>
	Consumer Discretionary?</h3>

	Keeping with the theme of sector funds, as prosaic as it sounds, the time could be right for the Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>). Classic seasonal trends could bolster what is already this year&#39;s top-performing member of the SPDR suite. As noted on Friday, XLY is home to several of this year&#39;s <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5951718/a-leading-sector-etf-for-november">best-performing Dow stocks</a>.

	Related Link: <a href="http://www.benzinga.com/news/earnings/15/11/5953939/high-hopes-for-facebook-disney-earnings-this-week">High Hopes For Facebook, Disney Earnings This Week</a>
<h3>
	Insurance</h3>

	It feels like earnings season is winding down, but one look at next week&#39;s earnings calendar proves otherwise. Some other sector funds will take their turns in the earnings limelight in the week ahead. The iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) is not a bad place to start as a fair amount of insurance providers step into the earnings confessional. Additionally, IAK is worth monitoring because insurance companies are sensitive to interest rates, in a positive way, so if Treasury yields climb, so should this ETF.
<h3>
	Oil&amp; Gas</h3>

	Fresh off an October gain of 11.4 percent, the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE: <a class="ticker" href="/stock/xop#NYSE">XOP</a>) will also see some earnings tests in the week ahead. Hint: Those reports are likely to reveal a lot of cost-cutting and downbeat commentary about the current state of the energy sector. The good news is, markets have <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5939541/how-to-play-oils-short-lived-rally">priced most of that in</a>.

	The iShares U.S. Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>) might be worth watching for the duration of November as Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Allergan Plc (NYSE: <a class="ticker" href="/stock/agn#NYSE">AGN</a>) work towards a marriage. As <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5949034/these-etfs-should-love-the-pfizer-allergan-news">Benzinga noted last week</a>, IHE has one of the largest combined weights to those two stocks of any ETF. Media reports out Friday indicate the two companies want to finalize a deal by Thanksgiving.

	Here&#39;s a fun fact that could reveal some clues about the level of risk appetite currently being displayed by investors while potentially also revealing clues about what to expect in the coming weeks: Of last week&#39;s 20 top-performing non-leveraged ETFs, 19 either energy, healthcare or Internet funds and all of those funds were up at least 2.9 percent on the week.

Previews

Pre-Market Outlook

ETF Week Ahead Preview: Hoping For No November Rain

In what could amount to the biggest takeover of a U.S. company in over a year, Dow component Pfizer Inc.&nbsp;(NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) is reportedly mulling an acquisition of specialty pharmaceuticals maker Allergan Plc&nbsp;(NYSE: <a class="ticker" href="/stock/agn#NYSE">AGN</a>).

	&quot;Pfizer recently approached Allergan about a deal, according to people familiar with the matter, with one of them adding that the process is early and may not yield an agreement. Other details of the talks are unclear,&quot; reports The <a href="http://www.wsj.com/articles/pfizer-allergan-considering-combining-1446079506">Wall Street Journal</a>.&nbsp;

	Allergan closed with a market value of about $113 billion on Wednesday. Pfizer&#39;s market value at Wednesday&#39;s close was nearly double that. New York-based Pfizer had nearly <a href="https://ycharts.com/companies/PFE/cash_on_hand">$30.3 billion in cash </a>on hand at the end of the second quarter.&nbsp;

	As is par for the course with healthcare sector deal-making, a batch of exchange traded funds stand to benefit, particularly if Pfizer can stomach what is likely to be a rich takeover price for Allergan. Among the ETF beneficiaries of the news, perhaps none standout more than the $917.7 million iShares U.S. Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>).

	Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/10/5947739/walgreens-rite-aid-buyout-will-hopefully-put-downward-pr">Walgreens-Rite Aid Buyout Will &#39;Hopefully&#39; Put Downward Pressure On Drug Prices</a>
<h3>
	Pharma ETF</h3>

	Really, it is about simple math for ETFs when it comes to benefiting from takeover talk and the math favors IHE. As of October 27, Pfizer and Allergan were IHE&#39;s second- and fifth-largest holdings, respectively, combining for more than 17 percent of the ETF&#39;s weight.

	Further examination of IHE&#39;s <a href="http://www.ishares.com/us/products/239519/IHE?referrer=tickerSearch">43-stock roster </a>reveals that roughly a quarter of the ETF&#39;s holdings are credible takeover targets and/or have already been rumored to be just that while a comparable amount of the ETF&#39;s lineup are legitimate buyers.&nbsp;
<h3>
	Beta Spin</h3>

	The PowerShares Dynamic Pharmaceuticals Portfolio (NYSE: <a class="ticker" href="/stock/pjp#NYSE">PJP</a>), <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5871033/the-survey-says-advisors-love-smart-beta-etfs">a strategic beta spin</a> on pharmaceuticals ETFs, is another ETF that cannot be overlooked as Pfizer mulls a marriage with Allergan. Pfizer and Allergan are PJP&#39;s second- and eighth-largest holdings, combining for nearly 11 percent of the ETF&#39;s weight.&nbsp;

	PJP&#39;s underlying index &quot;is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,&quot;&nbsp;<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PJP">according to PowerShares</a>.

	Like IHE, PJP is chock of healthcare buyers and sellers because the ETF allocates nearly two-thirds of its weight to large- and mega-cap stocks with the remainder going to small-caps. More than 10 percent of PJP&#39;s $1.6 billion in assets under management have flowed into the ETF over the past year, meaning only 11 PowerShares have added more new assets over that period.

	More importantly, PJP has risen more than five-fold over the past decade, making it the best-performing U.S. ETF over that span. A big reason behind PJP&#39;s decade of dominance has been, not surprisingly, healthcare mergers and acquisitions activity.

These ETFs Should Love The Pfizer-Allergan News

The month of February put the S&amp;P 500 back into positive territory for the year after a dismal 2015 start. The subsequent 5.5 percent gain was the best for the index since October 2011. The majority of sector ETFs closed in the green; however, there were a few that really struggled. Some of the best and worst of the month are listed below.
<h3>
	First Trust Dow Jones Internet Index ETF</h3>

	The First Trust DJ Internet Index Fund (ETF) (NYSE: <a class="ticker" href="/stock/fdn#NYSE">FDN</a>) consists of 42 Internet-related companies that generate at least 50 percent of sales/revenue from the Internet.

	The top individual holdings include:
<ul>
<li>
		Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) making up 8.2 percent</li>
<li>
		Facebook Inc (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>) with a 7.8 percent holding</li>
<li>
		Priceline Group Inc (NASDAQ: <a class="ticker" href="/stock/pcln#NASDAQ">PCLN</a>) coming in at 5.4 percent</li>
</ul>

	FDN is up 4 percent over the last 12 months, up 6 percent over the last six months and up 10 percent in the month of February. The ETF has an expense ratio of 0.57 percent.
<h3>
	iShares U.S. Home Construction ETF</h3>

	The iShares Dow Jones US Home Const. (ETF) (NYSE: <a class="ticker" href="/stock/itb#NYSE">ITB</a>) is made up of 37 U.S. companies that are in some way involved with the construction of residential homes.

	The top-weighted sectors in the ETF are household durables at 70 percent and building products at 13 percent.

	The top individual holdings include:
<ul>
<li>
		D.R. Horton, Inc. (NYSE: <a class="ticker" href="/stock/dhi#NYSE">DHI</a>) with a 10.9 percent holding</li>
<li>
		Lennar Corporation (NYSE: <a class="ticker" href="/stock/len#NYSE">LEN</a>)(NYSE: <a class="ticker" href="/stock/len-b#NYSE">LEN-B</a>) making up 10.8 percent</li>
<li>
		PulteGroup, Inc. (NYSE: <a class="ticker" href="/stock/phm#NYSE">PHM</a>) at 9.3 percent</li>
</ul>

	Over the last 12 months ITB is up 6 percent and 5 percent over the last six months. The ETF was one of the best performers in February, up 9 percent. ITB has an expense ratio of 0.43 percent.
<h3>
	iShares U.S. Pharmaceuticals ETF</h3>

	The iShares Dow Jones US Pharm Indx (ETF) (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>) consists of 39 pharmaceutical companies listed in the U.S.

	The top individual holdings include:
<ul>
<li>
		Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) at 7.7 percent</li>
<li>
		Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) making up 7.6 percent</li>
<li>
		Merck &amp; Co., Inc. (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) coming in at 6.5 percent</li>
</ul>

	IHE is up 29 percent over the last 12 months and 23 percent over the last six months. Through the month of February, the ETF has rallied 9 percent. The ETF has an expense ratio of 0.43 percent.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/media/cnbc/15/03/5290883/dan-nathan-sees-unusual-options-activity-in-powershares-qqq-trust-series-1-">Dan Nathan Sees Unusual Options Activity In PowerShares QQQ Trust, Series 1 (ETF)</a></bzrelatedlink>

	Highlighted below are the worst performing ETFs through February.
<h3>
	Utilities Select Sector SPDR Fund</h3>

	The Utilities SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) follows 32 companies across five sub-sectors in the utilities industry.

	Electrical utilities at 57 percent and multi-utilities at 40 percent make up the majority of the portfolio.

	The top individual holdings include:
<ul>
<li>
		Duke Energy Corp (NYSE: <a class="ticker" href="/stock/duk#NYSE">DUK</a>) at 9.1 percent</li>
<li>
		NextEra Energy Inc (NYSE: <a class="ticker" href="/stock/nee#NYSE">NEE</a>) coming in at 8.1 percent</li>
<li>
		Dominion Resources, Inc. (NYSE: <a class="ticker" href="/stock/d#NYSE">D</a>) totaling 7.5 percent.</li>
</ul>

	XLU is up 10 percent over the last 12 months and up 3 percent over the last six. The ETF struggled through February, however, down 6 percent. XLU has an expense ratio of 0.15 percent.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/media/cnbc/15/03/5290893/dennis-gartman-is-a-buyer-of-ishares-ftsexinhua-china-25-index-etf">Dennis Gartman Is A Buyer Of iShares FTSE/Xinhua China 25 Index (ETF)</a></bzrelatedlink>
<h3>
	iShares Cohen &amp; Steers REIT ETF</h3>

	The iShares Cohen &amp; Steers Realty Maj. (ETF) (NYSE: <a class="ticker" href="/stock/icf#NYSE">ICF</a>) is made up of 30 of the largest U.S. real estate companies.

	The top holdings include:
<ul>
<li>
		Simon Property Group Inc (NYSE: <a class="ticker" href="/stock/spg#NYSE">SPG</a>) with a 7.9 percent holding</li>
<li>
		Public Storage (NYSE: <a class="ticker" href="/stock/psa#NYSE">PSA</a>) making up 7 percent</li>
<li>
		Equity Residential (NYSE: <a class="ticker" href="/stock/eqr#NYSE">EQR</a>) at 6.8 percent</li>
</ul>

	ICF is up 22 percent over the last 12 months and up 11 percent on the last six months. The interest-rate sensitive ETF was down 4 percent in February. ICF has an expense ratio of 0.35 percent.

	Keep in mind that one month does not make a market, but it is important to note that the two biggest sector ETF losers tend to underperform when interest rates are on the rise.

First Trust Dow Jones Internet Index Fund

iShares Trusthen & Steers Realty Majors Index Fund

LEN-B

February's Best And Worst ETFs

The market pullback was due to a combination of factors that ranged from the Ebola scare to high valuations to falling oil prices to geopolitical concerns.

	The broad-based selling had an effect on every sector in the market including the drug stocks. The sector was trading at an all-time high with the S&amp;P 500 in mid-September before the selling began.

	Now that the dust is starting to settle, investors are able to look at buying opportunities in sectors that were brought down by market-wide selling.

	The pharmaceutical/drug ETFs are now sitting on support levels that suggest the past rally should continue.

	The&nbsp;Market Vectors Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/pph#NYSE">PPH</a>) tracks 27 of the largest publicly traded pharmaceutical companies across eight countries. The top weighted countries being the United States at 59 percent and Switzerland at 10 percent. The top individual holdings include Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) at 11 percent, Novartis Ag (ADR)&nbsp;(NYSE: <a class="ticker" href="/stock/nvs#NYSE">NVS</a>) with a 9.9 percent holding and Pfizer Inc.&nbsp;(NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) at 7.4 percent. The $363-million ETF broke through its 200-day moving average and is attempting to hold support at the $58 area.

	The ETF is up 20 percent over the last 12 months, and it pays a 2.0 percent dividend. The annual expense ratio is 0.35 percent.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/14/10/4931837/investors-flee-european-etfs">Investors Flee European ETFs</a></bzrelatedlink>

	The&nbsp;iShares Dow Jones US Pharm Indx&nbsp;(NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>) has $729 million in assets and tracks 42 pharmaceutical companies listed in the U.S. The top individual holdings in the portfolio are JNJ at 9.6 percent, PFE at 8.1 percent and Merck &amp; Co., Inc.&nbsp;(NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) coming in at 7.4 percent.

	The ETF was able to hold its 200-day moving average at $130.75 during the pullback before rallying with the overall market. Over the last year, the ETF is up 26 percent. The expense ratio is 0.43 percent and it pays out a dividend of 1.0 percent.

	The&nbsp;PowerShares Dynamic Pharmaceuticals(ETF)&nbsp;(NYSE: <a class="ticker" href="/stock/pjp#NYSE">PJP</a>) has $1.2 billion in assets and consists of 27 stocks with about 60 percent in the large-cap asset class and one-third in small-cap stocks. The top individual holdings include Auxilium Pharmaceuticals, Inc. (NASDAQ: <a class="ticker" href="/stock/auxl#NYSE">AUXL</a>) with a 5.3 percent holding, Bristol-Myers Squibb Co&nbsp;(NYSE: <a class="ticker" href="/stock/bmy#NYSE">BMY</a>) at 5.1 percent and Amgen, Inc.&nbsp;(NASDAQ: <a class="ticker" href="/stock/amgn#NASDAQ">AMGN</a>) making up 4.9 percent of the portfolio. The ETF was also able to hold the 200-day moving average at $59 before attracting some buyers. Over the last 12 months the ETF has been the best performer of the three with a gain of 31 percent.

	The expense ratio is slightly higher at 0.58 percent and the dividend yield is the lowest at 0.40 percent.

	While the first two ETFs are fairly similar with a heavy concentration on the larger stocks in the sector, PJP is more diverse with one-third of the allocation in the smaller names.

	This diversity has helped PJP outperform its peers and make up for the higher expense ratio and lower dividend yield. From a technical perspective both PJP and IHE are the most attractive because of the fact they held their respective 200-day moving averages. When all is considered, PJP appears to be the best positioned for a continued uptrend in the stock market and drug sector.

AMGN

AUXL

Drug ETFs Attractive Buys On Pullback

<a href="http://www.benzinga.com/topic/etfs">ETF</a> Outlook for Tuesday July 15, 2014

	The U.S. markets opened the week higher, closing with solid gains after trading with a very narrow range for the entire session. <a href="http://www.benzinga.com/topic/gold">Gold</a> suffered its worst one-day performance of the year as investors shifted out of the yellow metal and back into equities.
 The early morning indication was for a weaker market open after Europe was in the red. However, a handful of solid earnings announcements from the financials and healthcare have the buyers back at the table.

	iShares U.S. Pharmaceutical ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>)

	The ETF&rsquo;s largest holding, Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), beat earnings this morning on both the top and bottom line. The stock is up slightly in early morning trading, and if the momentum carries through after the opening bell it should have a direct effect on the sector and IHE. 
The ETF started the week off on a positive note as one of the market leaders with a gain of 1.2 percent on Monday. The rally comes after a healthy pullback to the 50-day moving average. The chart now indicates a new leg higher.
Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/14/07/4698999/small-caps-face-support-test">Small Caps Face Support Test</a>

	iShares U.S. Broker-Dealers ETF (NYSE: <a class="ticker" href="/stock/iai#NYSE">IAI</a>)

	Even after a 1.0 percent gain yesterday the ETF is lagging the market as concerns of a trading slowdown have hampered the sector. This morning it should continue its winning ways after the top holding, Goldman Sachs (NYSE: <a class="ticker" href="/stock/gs#NYSE">GS</a>), blew earnings estimates out of the water. The stock is now trading up about 1.5 percent, but once the opening bell rings it should continue to catch a bid. 
The good news for IAI is that it has been able to create a series of higher highs and higher lows the last few months, and if this trend continues it could send the ETF to the low $40&rsquo;s.

	SPDR Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>)

	A pullback in late June from an all-time high had some investors concerned the rally in the consumer staples was over. In reality the retreat was just a healthy 2.5 percent pullback to the 50-day moving average before the rally continued. The ETF is now just a few cents below a new all-time high as the longer-term uptrend remains intact. 
Consolidation news in the tobacco industry and news of more to come has the sector all over the board and could have an effect on XLP today. The sector makes up 15.4 percent of the ETF&rsquo;s portfolio.

Johnson & Johnson, Goldman Sachs Pushing These ETFs Upward

ETF Outlook for Tuesday, April 29, 2014

	iShares U.S. Pharmaceutical ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>)

	The news regarding U.S.-based drug companies continues to be heavy as earnings hit the wires this morning along with more merger news. Bristol-Myers Squibb (NYSE: <a class="ticker" href="/stock/bmy#NYSE">BMY</a>) reported earnings above estimates, but revenue below what analysts were looking for. The stock is trading down on the news.

	Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) is on the move higher Tuesday as it still attempts a takeover of AstraZeneca (NYSE: <a class="ticker" href="/stock/azn#NYSE">AZN</a>). The combo of earnings and merger news will keep IHE in play all day as volatility increases.

	Guggenheim Solar ETF (NYSE: <a class="ticker" href="/stock/tan#NYSE">TAN</a>)

	A downgrade of several China-based solar stocks by Credit Suisse put pressure on the sector and TAN closed the day down 4.4 percent. Even though the move to the downside was big, the ETF was able to rally from the intraday low before the bell rang.

	See also: <a href="http://www.benzinga.com/etfs/broad-u-s-equity-etfs/14/04/4499702/3-mega-cap-etfs-for-your-portfolio-mgc-oef-xlg-aapl-msft">3 Mega-Cap ETFs For Your Portfolio</a>

	The solar stocks are up slightly this morning and could catch some buying from the overall market and investors looking to buy on the dip. The support level to watch is the $36.50 area.

	SPDR S&amp;P Retail ETF (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>)

	Two retail sales numbers are released this morning. The ICSC Retail Sales number for the week came in with a gain of 1.6 percent week-over-week versus 0.4 percent last week. And the number was a more impressive 3.1 percent year-over-year versus 1.9 percent last week. Later this morning the Redbook Chain Store Sales number is also released.

	XRT has been in a choppy pattern going back to August of last year. The trading action included a new all-time high in November and a multi-month low in February. With the ETF in the middle of the range the next move is difficult to decipher, however expect some movement today to the upside when the opening bell rings.

	Global X Social Media ETF (NYSE: <a class="ticker" href="/stock/socl#NYSE">SOCL</a>)

	The ETF is officially well into bear market territory after a rough last four trading sessions. With a loss of 25.6 percent from the March high, the ETF is one of the worst performers in the market. SOCL closed down another 2.9 percent yesterday to the lowest level since July of last year. That being said, there could be some help on the horizon.

	After the bell Tuesday, Twitter (NYSE: <a class="ticker" href="/stock/twtr#NYSE">TWTR</a>)will report quarterly earnings. The stock is down 44 percent from the December high and yesterday it came within 50 cents of its all-time low of $38.80. Even a decent number could push both the stock and ETF higher. Look for a rebound after investors panicked over the last few weeks.

SOCL

TWTR

ETF Outlook For Tuesday, April 29, 2014 (IHE, TAN, XRT, SOCL, TWTR)

Like Big Oil, Big Pharma has entered a period of consolidation.

	There are many factors contributing to this. First, it can be cheaper to buy a company with a promising product rather than undergo the costs of developing a drug.
 Add in low interest rates that make it cheap to borrow money to buy other companies. Finally, Big Pharma has also done well, providing the profit income that allows for corporate deals.
 For investors, there are three ways to profit from these drug company deals.

	1. Exchange traded funds for the sector offer profits from a broad asset base.

	As discussed in a recent <a href="http://www.benzinga.com/etfs/sector-etfs/14/04/4487079/drug-etfs-surge-on-m-a-activity-agn-vrx-ihe-xph-pph-azn">article on Benzinga</a>, ETFs covering the sector include iShares US Pharmaceutical (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>), SPDR S&amp;P US Pharmaceuticals (NYSE: <a class="ticker" href="/stock/xph#NYSE">XPH</a>), and Market Vectors Pharmaceutical ETF (NYSE: <a class="ticker" href="/stock/pph#NYSE">PPH</a>). All have done well in recent market action to the appeal of drug companies.
 If consolidation continues, which is should, the <a href="http://www.benzinga.com/topic/etfs">ETFs</a> could do even better. Market Vectors Pharmaceuticals ETF is the only one that holds foreign firms.

 See also: <a href="http://www.benzinga.com/trading-ideas/long-ideas/14/04/4473539/natural-resource-stocks-for-income-value-and-growth-investors">Natural Resource Stocks For Income, Value and Growth Investors</a>
	2. It is always wise to own blue chip Big Pharma.

	Companies such as Merck (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) and Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) are great stocks. Both have done well in the bull market.
 The merger activity in the sector will the share prices of all of the publicly traded companies. In addition, <a href="http://www.benzinga.com/topic/merck">Merck</a> and <a href="http://www.benzinga.com/topic/pfizer">Pfizer</a> have high dividend yields, too.

	3. Big Pharma loves buying appealing small caps like CytoDyn, Inc. (NASDAQ: <a class="ticker" href="/stock/cydy#NASDAQ">CYDY</a>).
Owning a target company in a period of consolidation can be profitable. As covered in another <a href="http://www.benzinga.com/trading-ideas/long-ideas/14/04/4418708/helping-patients-more-with-less-drugs-an-interview-with-cytod">article on Benzinga</a>, CytoDyn is a small cap biotech firm with a product developing well that could revolutionize the treatment of HIV patients. 
That is a huge market with tremendous cost savings from the "drug holiday" treatment that CytoDyn hopes to bring to market. This is type product that, if approved, makes the host company very tempting.

	The drug industry should continue to do well. Populations in major countries are aging, which increases spending for pharmaceutical products. Emerging market countries will also spend more on drugs and related services as health care improves from greater affluence.  From that, the ETFs, blue chips, and small caps in the drug industry should continue to do well!

Dividends

Emerging Markets

Small Cap Analysis

Technicals

Global

CYDY

3 Ways To Profit From Merger Activity In The Pharmaceutical Sector

Are Healthcare Stocks A Risky Prescription In A U.S. Election Year?

Why Biotech Stocks May Be Ready For A Recovery

2024 Outlook: A New 'Super Boom'? Or Chop And Churn?

Why Stocks Can Survive Bond Market Bumps

Taking Stock: Q2 2024 Equity Market Outlook

iShares U.S. Pharmaceuticals ETF declares quarterly distribution of $0.2750

Cons Disc distribution & retail has the highest dispersion among S&P groups - MS

In a significant meeting at the White House on April 3rd, President Biden and Senator Bernie Sanders joined forces to assert control over pharmaceu...