Pharma ETF (IHE) Hit a 52-Week High

Core Viewpoint - The iShares U.S. Pharmaceuticals ETF (IHE) has recently reached a new 52-week high, with shares up approximately 29.6% from their 52-week low of $58.97/share, indicating strong momentum in the pharmaceutical sector [1]. Group 1: Fund Overview - IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index, which is a free-float adjusted market capitalization-weighted index that includes pharmaceutical companies involved in prescription or over-the-counter drugs or vaccines, excluding vitamin producers. The fund charges 38 basis points in fees [2]. Group 2: Performance Drivers - A significant portion of IHE's weight, approximately 23.66%, is invested in Eli Lilly & Co (LLY), which has seen its stock gain 9.6% over the past week due to strong earnings and positive guidance. Eli Lilly's ongoing investment activities are also beneficial for the fund [3]. - Eli Lilly announced plans to invest $1.2 billion in Puerto Rico and is set to build a new $3 billion manufacturing plant in the Netherlands to enhance production capacity for its experimental weight-loss pill, orforglipron, and other oral medications [4]. Group 3: Future Outlook - The fund has a positive weighted alpha of 13.47, suggesting a favorable outlook for investors looking to capitalize on the ETF's upward momentum [5].