Top 10 healthcare ETFs to watch in 2026

Healthcare ETFs hold shares in companies that make medicines, build medical devices and deliver clinical services. The ten funds in this list approach that exposure differently – most are designed to track broad U.S. healthcare indexes, but ARK Genomic Revolution ETF ($ARKG) is actively managed, iShares Biotechnology ETF ($IBB) narrows to biotech, and iShares Global Healthcare ETF ($IXJ) extends coverage to global healthcare companies rather than just U.S. ones.

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in US$. Data updated as of 21 September 2026.

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1. State Street Health Care Select Sector SPDR ETF ($XLV)

State Street Health Care Select Sector SPDR ETF (XLV) share price over the last year: started at US$136.63, ended at US$169.01, a change of +23.7%. Range over the period: high US$175.68, low US$134.13. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$169.01 · Daily: 0.4% · AUM: US$43.50B · MER: 0.08%

Tracking the Health Care Select Sector Index, State Street Health Care Select Sector SPDR ETF ($XLV) is designed to correspond to that benchmark's price and yield performance before expenses. The fund's rules require at least 95% of its total assets to stay in the securities that make up the index.

That tight mandate leaves little room to deviate from the benchmark. Because the focus is a single sector, $XLV concentrates on healthcare companies rather than spreading exposure across multiple industries. The index-tracking structure means the portfolio moves with healthcare as a sector, not with any individual manager's view on which stocks look promising.

2. Vanguard Health Care ETF ($VHT)

Vanguard Health Care ETF (VHT) share price over the last year: started at US$256.13, ended at US$317.99, a change of +24.2%. Range over the period: high US$329.48, low US$250.29. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$317.99 · Daily: 0.7% · AUM: US$19.30B · MER: 0.09%

The MSCI U.S. Investable Market Health Care Index covers U.S. health care stocks across all three size tiers – large, mid and small cap. Vanguard Health Care ETF ($VHT) is designed to track that index. The multi-cap construction extends the fund's reach to mid- and small-sized companies, not only the sector's largest names.

$VHT's holdings reflect the index composition at any given time, adjusting as companies enter or leave the index. That rules-based structure means portfolio changes are driven by index methodology rather than manager calls.

3. iShares Biotechnology ETF ($IBB)

iShares Biotechnology ETF (IBB) share price over the last year: started at US$143.41, ended at US$207.16, a change of +44.5%. Range over the period: high US$216.96, low US$139.07. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$207.16 · Daily: 1.3% · AUM: US$10.45B · MER: 0.44%

iShares Biotechnology ETF ($IBB) aims to track the ICE Biotechnology Index, which covers U.S.-listed companies classified within the biotechnology industry. The fund is designed to hold at least 90% of its assets in securities from that index.

Biotech sits apart from the broader healthcare sector – companies here focus on developing drugs and therapies, which means the portfolio is more concentrated than a general healthcare fund. A 0.44% management expense ratio (MER) applies to the fund.

4. State Street SPDR S&P Biotech ETF ($XBI)

State Street SPDR S&P Biotech ETF (XBI) share price over the last year: started at US$97.30, ended at US$158.23, a change of +62.6%. Range over the period: high US$169.55, low US$95.86. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$158.23 · Daily: 1.0% · AUM: US$10.34B · MER: 0.35%

State Street SPDR S&P Biotech ETF ($XBI) is designed to track the S&P Biotechnology Select Industry Index, which draws from the biotechnology segment of a broad U.S. total market composite index. The fund uses a passive management strategy, so it aims to mirror the index's total return rather than pick individual winners within biotech.

Biotech as a segment covers companies working on drug development, genetic therapies and related sciences – it's a concentrated corner of healthcare, not a broad slice of it. That focus sets $XBI apart from funds that cover the wider healthcare sector.

5. iShares Global Healthcare ETF ($IXJ)

iShares Global Healthcare ETF (IXJ) share price over the last year: started at US$87.76, ended at US$103.18, a change of +17.6%. Range over the period: high US$107.48, low US$85.55. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$103.18 · Daily: 0.7% · AUM: US$4.35B · MER: 0.38%

The S&P Global Healthcare Sector Index is the benchmark for iShares Global Healthcare ETF ($IXJ). That index is a subset of the S&P Global 1200, covering healthcare companies that Standard & Poor's considers important to global markets.

Most funds in this list are built around U.S. healthcare benchmarks. $IXJ's mandate pulls from a broader pool, extending to healthcare companies from outside the U.S. as well.

6. iShares US Healthcare ETF ($IYH)

iShares US Healthcare ETF (IYH) share price over the last year: started at US$57.77, ended at US$71.61, a change of +24.0%. Range over the period: high US$74.33, low US$56.59. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$71.61 · Daily: 0.6% · AUM: US$3.85B · MER: 0.37%

iShares US Healthcare ETF ($IYH) is designed to track the Russell 1000 Health Care RIC 22.5/45 Capped Index, which measures the performance of the healthcare sector within the U.S. equity market. The index applies concentration limits – capping individual holdings at 22.5% and the combined weight of larger positions at 45% – to keep the portfolio from being dominated by a handful of companies.

The fund holds the component securities of that index directly, so its makeup shifts as the index rebalances. At a 0.37% management expense ratio (MER), it sits at a higher cost point than broad market ETFs, which is common for sector-specific funds.

7. Fidelity MSCI Health Care Index ETF ($FHLC)

Fidelity MSCI Health Care Index ETF (FHLC) share price over the last year: started at US$65.72, ended at US$81.95, a change of +24.7%. Range over the period: high US$85.19, low US$64.46. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$81.95 · Daily: 0.7% · AUM: US$3.55B · MER: 0.08%

Fidelity MSCI Health Care Index ETF ($FHLC) is designed to track the MSCI USA IMI Health Care Index, which covers the health care sector across the U.S. equity market. The fund aims to invest at least 80% of its assets in securities from that index.

The IMI – Investable Market Index – label means the index is intended to capture large, mid and small-cap companies together, rather than focusing on a narrow slice. $FHLC carries a 0.08% management expense ratio.

8. ARK Genomic Revolution ETF ($ARKG)

ARK Genomic Revolution ETF (ARKG) share price over the last year: started at US$27.85, ended at US$51.81, a change of +86.0%. Range over the period: high US$51.81, low US$24.82. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$51.81 · Daily: 0.3% · AUM: US$2.21B · MER: 0.75%

ARK Genomic Revolution ETF ($ARKG) focuses on companies advancing genomic science and technology, with holdings drawn from sectors including healthcare, information technology, materials, energy and consumer discretionary. Unlike most funds in this list, which aim to track a fixed index, $ARKG is actively managed – a portfolio team selects stocks according to the fund's genomic theme rather than replicating a benchmark. The fund holds both domestic and foreign equities, and its stated mandate is long-term growth of capital.

9. VanEck Pharmaceutical ETF ($PPH)

VanEck Pharmaceutical ETF (PPH) share price over the last year: started at US$88.51, ended at US$111.66, a change of +26.2%. Range over the period: high US$117.87, low US$85.99. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$111.66 · Daily: 0.4% · AUM: US$1.03B · MER: 0.35%

VanEck Pharmaceutical ETF ($PPH) seeks to replicate the price and yield performance of the MVIS US Listed Pharmaceutical 25 Index, which covers common stocks of pharmaceutical companies listed in the U.S. The index holds 25 names – a concentrated portfolio focused on a single industry within the healthcare sector.

Rather than actively selecting stocks, $PPH is designed to follow the index's composition as closely as possible. That index measures both the price movements and the income paid out by those 25 pharmaceutical companies. The fund's mandate requires at least 80% of its assets to be invested in the index's constituent securities.

10. Invesco S&P 500 Eql Wght Health Care ETF ($RSPH)

Invesco S&P 500 Eql Wght Health Care ETF (RSPH) share price over the last year: started at US$28.99, ended at US$36.84, a change of +27.1%. Range over the period: high US$38.03, low US$28.40. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$36.84 · Daily: 0.3% · AUM: US$908.3M · MER: 0.40%

Invesco S&P 500 Eql Wght Health Care ETF ($RSPH) is built around a specific idea: that every healthcare company in the S&P 500 deserves the same slice of the portfolio. Most healthcare indexes weight by market capitalisation, which means the biggest names – large pharmaceutical and health insurance companies – tend to dominate. An equal-weight approach gives smaller S&P 500 healthcare names the same starting allocation as the giants.

The fund aims to track the S&P 500 Equal Weight Health Care Index, investing at least 90% of its assets in the index's constituent securities in line with their index weightings. That mandate keeps the portfolio tightly tied to the index's composition rather than drifting from it. Because the weights are periodically rebalanced back to equal, the fund mechanically trims positions that have grown and adds to those that have lagged.

Common questions

How can I invest in healthcare ETFs in New Zealand?

All the funds in this article are listed on U.S. exchanges, so you'd access them through a trading platform that supports U.S. markets. You search by ticker, and orders are placed during U.S. market hours. Because these funds are priced in USD, the NZD/USD rate affects what a purchase costs and what any proceeds are worth in New Zealand dollar terms.

What are the key risks of healthcare ETFs?

Some of the key risks include regulatory risk – healthcare companies typically need a regulator's sign-off before a product can be sold, and a failed or delayed approval can weigh heavily on individual holdings. Currency exposure adds another layer: because these funds are USD-priced, movements in the NZD/USD rate affect the New Zealand dollar value of any sale proceeds. Other risks include clinical trial failures in biotech-concentrated funds, broader equity market downturns and the possibility that a fund doesn't perfectly track its underlying index.

How do the sub-sector funds here differ from the broader healthcare ETFs?

The broad healthcare ETFs in this list hold companies across the full sector – pharmaceuticals, medical devices, managed care and health services together in one portfolio. Sub-sector funds narrow that considerably: the biotech ETFs focus on companies developing biological medicines, concentrating exposure on clinical trial outcomes, while the pharmaceutical ETF limits its holdings to drug companies. $IXJ takes a different approach, extending beyond U.S. stocks to include healthcare companies from international markets.

What's the difference between a passive and an actively managed healthcare ETF?

Most funds here are passive – they aim to track a benchmark index and hold its securities in roughly the same proportions. $ARKG is actively managed, meaning a portfolio team selects holdings based on their own research into genomics and life sciences companies, and the fund can deviate substantially from any index. That flexibility comes at a cost: $ARKG's MER of 0.75% is the highest in this list, against 0.08% for $XLV and $FHLC.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

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