With sector ETFs, you invest in a specific part of the economy, for example in the healthcare sector. The most widely used standard in the financial industry for dividing the economy into sectors is the Global Industry Classification Standard (GICS). The major index providers MSCI and S&P use this standard consisting of 11 sectors and 68 assigned industries.
For the classification of listed companies in each sector, the index providers analyse in which business segment companies are generating the majority of their sales and profits. Additionally, the positioning and public perception of a company are also taken into account.
0.18% p.a. - 0.68% p.a.
annual total expense ratio (TER) of healthcare ETFs
on the healthcare sector, which are tracked by ETFs
11 ETFs
on the healthcare sector
How do I invest in the healthcare sector?
An industry or sector index consists of all the companies of a certain sector starting from a parent index. For example, the MSCI World Health Care index tracks all companies from the healthcare sector that are included in the MSCI World. A global healthcare ETF thus gives you the opportunity to invest in the largest companies from the healthcare sector worldwide.
Sector ETFs of this type should not be mixed up with thematic ETFs. Thematic ETFs track a non-standardised industry group and a specific investment theme. We provide you with an overview of the available thematic ETFs here.
justETF tip:You can find out more about sector ETFs in our articles Investing in different sectors via ETFsand What sort of sector ETFs are available?.
Companies from the healthcare sector include healthcare service providers such as operators of hospitals and emergency services. Distributors and manufacturers of equipment and supplies are also included, as well as technology companies for the healthcare sector. Companies involved in the research, development, production and marketing of pharmaceuticals and biotechnological products are assigned to the healthcare sector, too. Special thematic ETFs are available for various sub-sectors of the healthcare sector. These include, for example, ETFs on biotech and cannabis. In addition, innovation ETFs often provide a focus on healthcare innovation.
In this investment guide, you will find all ETFs that allow you to invest globally in companies from the healthcare sector. For a performance comparison of the various ETF sectors, please have a look at our market overview.
MSCI World Health Care performance
1 month: 1.61%
1 year: 8.50%
3 years: 38.88%
5 years: 68.73%
Healthcare ETFs in comparison
The most important factors at a glance
In the table below we have listed the currently available healthcare ETFs. Via the "Properties" and "Performance" tabs, you can find detailed information on these ETFs and sort them according to your desired criterion. More information about the different criteria when choosing an ETF can be found in our article on ETF selection.
Properties
Performance
ETF ISIN
Fund size in m GBP
TER in %
Inception date
Use of profits
Fund domicile
Replication method
Xtrackers MSCI World Health Care UCITS ETF 1CIE00BM67HK77
Vanguard Health Care ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VHT is an excellent option for investors seeking exposure to the Health Care ETFs segment of the market.
They are excellent vehicles for long term investors. Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification.
VHT has a conensus rating of Strong Buy which is based on 341 buy ratings, 59 hold ratings and 7 sell ratings. What is VHT's price target? The average price target for VHT is $305.23.
VHT has a dividend yield of 1.35% and paid $3.47 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.
ETFs are convenient and effective, to say the least. If you're interested in investing in an ETF and have $1,000 that you can spare to invest -- meaning you already have an emergency fund saved and have paid down any high-interest debt -- the Vanguard S&P 500 ETF (VOO 1.24%) is a great option.
In 2023, SPYI generated total returns of 18.13% and price returns of 4.69%. JEPI's total returns were 9.81% with price returns of 0.90% over the same period. SPYI remains a consistent outperformer within the category and has a management fee of 0.68%.
Introduction: My name is Neely Ledner, I am a bright, determined, beautiful, adventurous, adventurous, spotless, calm person who loves writing and wants to share my knowledge and understanding with you.
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