Three pharmaceutical ETFs share similar characteristics. First there is SPDR’s S&P Pharmaceuticals ETF, (XPH), which tracks the S&P Pharmaceuticals Select index and holds 24 stocks. The fund gives near equal weighting to each position at approximately 4% and charges the lowest expense ratio of the three at 0.35%. However, it has the lowest average trading volume at just under 25,000 shares. Next, iShares’ Dow Jones US Pharmaceuticals (IHE) tracks the Select version of the named fund and holds 34 stocks, with Johnson & Johnson as its top holding at close to 8%. IHE charges an expense ratio of 0.48% and trades over 42,000 shares on average. Finally, PowerShares’ Dynamic Pharmaceuticals (PJP) ETF tracks the Dynamic Pharmaceuticals Intellidex Index, which according to the company’s site, looks for stocks with capital appreciation potential based on fundamental growth, stock valuation, and investment timeliness. The fund charges the highest expense ratio at 0.63% and holds 30 stocks.

A more aggressive pharmaceutical fund is HOLDRs’ Pharmaceutical (PPH). The fund holds just 17 stocks, including Johnson & Johnson, which represents just under 25% of the portfolio. The fund has 60% of its assets in four companies; Abbott Labs, Johnson & Johnson, Merck, and Pfizer.