Should You Invest in the Invesco Pharmaceuticals ETF (PJP)?

Core Viewpoint - The Invesco Pharmaceuticals ETF (PJP) provides broad exposure to the Healthcare - Pharma segment, appealing to both retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2]. Fund Overview - PJP is a passively managed ETF launched on June 23, 2005, with assets exceeding $257.58 million, positioning it as an average-sized ETF in the Healthcare - Pharma sector [3]. - The fund aims to match the performance of the Dynamic Pharmaceutical Intellidex Index, which evaluates U.S. pharmaceutical companies based on various investment criteria [4]. Cost Structure - The annual operating expenses for PJP are 0.56%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 1.07% [5]. Sector Exposure and Holdings - PJP is fully allocated to the Healthcare sector, with Eli Lilly & Co (LLY) making up approximately 5.24% of total assets, followed by Pfizer Inc (PFE) and Amgen Inc (AMGN). The top 10 holdings constitute about 47.34% of total assets [6][7]. Performance Metrics - Year-to-date, PJP has increased by roughly 9.35%, and it was up about 6.41% over the last 12 months as of August 19, 2025. The ETF has traded between $74.593 and $90.012 in the past 52 weeks, with a beta of 0.48 and a standard deviation of 15.82% over the trailing three-year period [8]. Alternatives - PJP holds a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the Healthcare ETFs market. Other alternatives include the VanEck Pharmaceutical ETF (PPH) and the iShares U.S. Pharmaceuticals ETF (IHE), which have assets of $532.51 million and $571.47 million, respectively, with lower expense ratios of 0.36% and 0.39% [9][10].