1 Healthcare ETF to Snatch Up in Late July

The health care sector looked like a very promising target as we moved into this new decade. Indeed, the only sector that outpaced health care equities in the 2010s was technology. Interest in this space erupted during the COVID-19 pandemic Today, I want to zero-in on an exchange-traded fund (ETF) that offers exposure to this explosive sector.

Before we jump into the ETF, let’s take a snapshot at the worldwide healthcare space. Verified Market Research recently projected that the global healthcare market will reach $665 billion by 2028. Meanwhile, United States national healthcare expenditure is expected to reach $6.2 trillion in 2028 compared to $4.1 trillion in 2020.

This trajectory should inspire Canadians to consider the iShares Global Healthcare Index ETF (TSX:XHC). The ETF offers targeted exposure to equities of issuers in the global health care sector through the iShares Global Healthcare ETF, though Canadian dollar hedged. Shares of this ETF have dropped 2.5% in 2022 as of close on July 28. It is still up marginally in the year-over-year period.

United States health care securities make up more than 70% of this fund’s holdings. The next closest is Switzerland at roughly 8%. Some of the top holdings in the ETF include UnitedHealth Group, health care giants that manufactured COVID-19 vaccines like Johnson & Johnson and Pfizer, as well as companies like Merck & Co and Novartis.