The Risks of Investing in iShares U.S. Pharmaceuticals ETF: A Critical Analysis.

The iShares U.S. Pharmaceuticals ETF (IHE) has 46.8% of its $1.1 billion portfolio concentrated in Johnson & Johnson (JNJ) and Eli Lilly (LLY). JNJ is up 14% YTD, while LLY is down 15%. The fund is flat YTD, reflecting opposing performance between the two dominant holdings facing pricing pressure and manufacturing constraints. Regulatory scrutiny from the Trump administration's proposed CMS rules and HHS Secretary Robert F. Kennedy Jr.'s regulatory scrutiny of the GLP-1 category may compress revenues across the entire ETF in 2026.