Lilly’s Total Returns Are Lower than Some Pharma ETFs

ETFs are the securities that are publicly traded on the stock markets. However, they track an index, a commodity, or a basket of assets. ETFs are designed for the investors who don’t have the capacity to hold many stocks, but are interested in the diversification of investments within a sector or industry.

The above chart compares ETFs holding Eli Lilly and Company (LLY), also referred to as “Lilly,” as a percentage of their total assets. The total return for Lilly’s share price on the NYSE from July 2010 to June 2015 has been around 17.9%. This is lower than a few of the ETFs focused on the pharmaceutical segment.

The Health Care Select Sector SPDR ETF (XLV) has been operational since 1998. XLV’s net assets are $14.5 billion. Lilly forms about 2.9% of the fund’s total assets. The total return over the last five years was over 22.1%.

The PowerShares Dynamic Pharmaceuticals ETF (PJP) has been operational since 2005. Its net assets are $2 billion. Lilly forms 4% of the fund’s total assets. The total return over the last five years was over 34.6%.

The SPDR S&P Pharmaceuticals ETF (XPH) tracks an index that represents the pharmaceutical sub-industry portion of the S&P Total Markets Index.  The fund has been operational since 2006. XPH’s net assets are $1.17 billion. Lilly forms 2.9% of the fund’s total assets. The total return over the last five years was nearly 27%.

The iShares US Pharmaceuticals Index Fund (IHE) has been operational since 2006. Its net assets are $930 million. Lilly forms 6% of the fund’s total assets. The total return over the last five years was nearly 26.8%.

The VanEck Vectors Pharmaceutical ETF (PPH) has been operational since 2011. PPH’s net assets are $390 million. Lilly forms 4.7% of the fund’s total assets. PPH also holds companies like Johnson & Johnson (JNJ), Novartis AG (NVS), and Pfizer (PFE). Over the last three years, the total return was over 22.6%.