PowerShares Dynamic Pharmaceuticals ETF

PJP is designed to give investors exposure to numerous U.S. pharmaceuticals companies. This ETF, however, hand picks its individual securities based on a wide variety of investment merit criteria, including stock valuation and risk factors. Investing in pharmaceuticals can be a difficult task because of the various regulations outlined by the FDA and rigorous testing it takes for a product to hit the U.S. markets. Investors interested in PJP should keep up to date on FDA regulations and policies to see how it will affect their holdings. Another factor that investors should be aware of is the patent lives of the drugs from some of these brand name companies. Once major drugs lose their patent, the companies can take a big hit as the generic competitors aim to swoop in and undercut big business. PJP offers an excellent spread of the major players in domestic pharmaceuticals, and will be a great addition for any investor willing to keep up with the happenings of this fast-paced industry.

• PowerShares Dynamic Pharmaceuticals ETF