With an estimated $3 trillion spent on healthcare each year in the U.S. alone, you can invest in the industry and expect a profit. An exchange-traded fund (ETF) is an investment fund traded on stock exchanges. An ETF holds assets such as stocks, commodities or bonds. The best healthcare ETFs invest in a bundle of stocks from hospitals, pharmaceuticals, insurance agencies, medical equipment manufacturers and drug distributors. Take a look at the biggest gainers and losers on the market right now.
Quick Look at the Best Healthcare ETFs:
Biggest Gainers and Losers
Here’s a quick look at healthcare ETFs on the market with the best profits and worst losses.
|LABD||Direxion Daily S&P Biotech Bear 3X Shares||$14.83||1.57%||4.6M||Buy/Sell|
|BIS||ProShares UltraShort Nasdaq Biotechnology||$22.41||0.49%||5.1K||Buy/Sell|
|SBIO||ALPS Medical Breakthroughs ETF||$27.78||0.46%||10.6K||Buy/Sell|
|PTH||Invesco Dorsey Wright Healthcare Momentum ETF||$34.84||0.43%||13K||Buy/Sell|
|RXD||ProShares UltraShort Health Care||$12.86||0.15%||5K||Buy/Sell|
|BBP||Virtus LifeSci Biotech Products ETF||$52.98||0.11%||1.1K||Buy/Sell|
|IHF||iShares U.S. Health Care Providers ETF||$258.11||0.04%||17.1K||Buy/Sell|
|PSCH||Invesco S&P SmallCap Health Care ETF||$37.91||-2.27%||18.4K||Buy/Sell|
|KURE||KraneShares MSCI All China Health Care Index ETF||$17.54||-1.84%||9.9K||Buy/Sell|
|XHE||SPDR S&P Health Care Equipment||$75.80||-1.74%||47.4K||Buy/Sell|
|IDNA||iShares Genomics Immunology and Healthcare ETF||$20.92||-1.74%||32K||Buy/Sell|
|HTEC||Robo Global Healthcare Technology and Innovation ETF||$25.13||-1.62%||15.4K||Buy/Sell|
|GNOM||Global X Genomics & Biotechnology ETF||$10.64||-1.58%||283.1K||Buy/Sell|
|XHS||SPDR S&P Health Care Services ETF||$86.43||-1.42%||14.3K||Buy/Sell|
|LABU||Direxion Daily S&P Biotech Bull 3X Shares||$87.06||-1.32%||1.9M||Buy/Sell|
|PBE||Invesco Biotechnology & Genome ETF||$59.83||-0.99%||10.6K||Buy/Sell|
|IHI||iShares U.S. Medical Devices ETF||$50.32||-0.95%||1.5M||Buy/Sell|
Premarket Healthcare ETFs
Here’s a quick look at the premarket positions of healthcare ETFs to help you predict price movements during trading sessions.
Aftermarket Healthcare ETFs
Here’s a quick look at the positions of healthcare ETFs after major stock exchanges are closed for trading.
Why Invest in Healthcare ETFs?
Here are the top 3 reasons you should consider investing in these ETFs.
1. Back medical advancements. Technology has transformed health care. Advances have introduced less invasive outpatient surgeries, telehealth doctor consultations and greater doctor-patient communication. Manufacturers also contribute with devices like smart health watches, heart rate monitors and other biosensors.
ETFs allow you to invest in a pool of companies that manufacture wearable medical devices such as smart health watches, heart-rate monitors, blood pressure monitors and other biosensors.
2. Less volatile. Unlike other businesses, the services provided by companies bundled in these ETFs are considered non-cyclical, which means they’re in constant demand. This demand helps maintain the daily stock prices of healthcare companies, regardless of the stock market’s condition.
3. Safer investments during market crashes. Our perpetual need for medical care can help protect these ETFs against some economic crises and recessions. It’s not uncommon to see healthcare ETFs in the green even under extreme pressure.
This means you could have a higher chance to buy or sell these ETF stocks when all your other stocks plummet. Healthcare investments can help you build a defensive portfolio.
Top 3 Healthcare ETFs by AUM
Healthcare is a multi-billion-dollar industry and ETFs from this category are among the fastest-growing investments. You can find extensive coverage of large-cap companies, mid-cap companies and penny stocks listed under ETFs on the NYSE, NASDAQ and Morningstar.com.
Before you begin trading these ETFs, compare expense ratios, historical performance, liquidity and the total assets under management (AUM). Based on these criteria, Benzinga recommends taking a look at the following ETFs.
1. iShares U.S. Medical Devices ETF (NYSEARCA: IHI)
iShares U.S. Medical Devices ETF has been listed on the stock exchange since 2006. It offers exposure to more than 57 companies — including medical device manufacturers — by tracking the Dow Jones U.S. Select Medical Equipment Index.
The iShares U.S. Medical Devices ETF has AUM at $5 billion, and you can purchase its shares at a low expense ratio of 0.43%. More than 3 million shares of this ETF are traded each day. iShares U.S. Medical Devices ETF has an excellent 5-year return record of 110.53%.
2. SPDR S&P Health Care Equipment ETF (NYSEARCA: XHE)
SPDR S&P Health Care Equipment ETF has been on the market since 2011. It tracks the S&P Health Care Equipment Select Industry Index and offers exposure to manufacturers of various medical equipment and supplies. A total number of 67 companies are listed under this ETF.
The ETF also has a low expense ratio of 0.35% with $448 million AUM. It has comparatively low liquidity with an average daily trade volume of 52,100 shares. You’ll also get a proven 5-year return record of 62.43%.
3. Invesco S&P SmallCap Health Care ETF (NYSEARCA: PSCH)
Invesco S&P SmallCap Health Care ETF has been open for investing since 2010. You can gain exposure to more than 73 companies in the small-cap healthcare sector by tracking the S&P SmallCap 600 Health Care Index.
Invesco S&P SmallCap Health Care ETF has a total of $370 million AUM. You can buy shares of this ETF at a low expense ratio of 0.29% — more than 30,000 shares are traded each day. The Invesco S&P SmallCap Health Care ETF has a recorded 5-year return of 59.25%.
Best Online Brokers for Healthcare ETFs
You can find and trade the top ETFs on the stock market with an online broker — most offer commission-free trading. Here’s a rundown of the best online brokers to help you get started.
1. You Invest by JP Morgan
Chase You Invest is an online broker with tools, expertise and insights from J.P. Morgan. You can open a You Invest Trade account with a $0 minimum deposit or a You Invest Portfolio account with a $500 minimum deposit.
You can trade unlimited stocks, ETFs and options at $0 commission. Trade on your own or have smart portfolios managed for you. Chase You Invest is regulated by the Financial Industry Regulatory Authority (FINRA).
Firstrade is a customizable online broker that lets you trade from your desktop, iPad or smartphone. You can open an account on Firstrade with a $0 minimum deposit.
Firstrade offers more than 2,200 ETFs to trade at $0 commission. There are more than 100 ETF providers listed with details and access to Morningstar coverage. You can backtrack trades made prematurely with a $0 redemption fee. Firstrade is regulated by the SEC and FINRA.
3. TD Ameritrade
TD Ameritrade is a popular online broker with an estimated 500,000 trades that take place each day. You can open an account on TD Ameritrade with a $0 minimum deposit. Trade using its web or mobile application.
Get Top Healthcare ETFs for Your Portfolio
Healthcare ETFs can provide you with low-cost trades with promising long-term returns. Many ETFs from the healthcare sector also offer you optimistic annual dividend rates to further strengthen your financial portfolio.
What is a healthcare ETF?
A healthcare ETF is a bundle of stocks that is related to the healthcare industry.
Where can I find a list of healthcare ETFs?
You can find a list of healthcare ETFs on the list above.
Which brokers deal in healthcare ETFs?
You can find a list of Benzinga’s recommended brokers above that deal in healthcare ETFs.