The SPDR S&P Pharmaceuticals ETF (XPH) is an exchange-traded fund (ETF) designed to track the performance of the S&P Pharmaceuticals Select Industry Index. To achieve this, the fund uses a sampling strategy, which means it selects a representative portion of the securities in the index to invest in.
The ETF typically invests at least 80% of its total assets in the securities that make up the index, which is a subset of the S&P Total Market Index (S&P TMI). This index represents the pharmaceuticals segment of the broader market, providing investors with targeted exposure to this specific industry.
By investing in the SPDR S&P Pharmaceuticals ETF, investors can gain access to a diversified portfolio of pharmaceutical companies, which can help spread risk and potentially increase returns. The fund's focus on the pharmaceuticals industry also allows investors to tap into the growth potential of this sector, which is driven by advances in medical research, technology, and healthcare demand.
The SPDR S&P Pharmaceuticals ETF is listed on the NYSE Arca exchange under the ticker symbol XPH, and its website can be found at http://www.spdrs.com. As a US-domiciled fund, it is subject to the regulatory framework of the United States.