12 Best Healthcare ETFs To Buy

Published September 6, 2023 at 11:14 am EDT Updated August 19, 2026 at 10:42 am EDT

In this article, we discuss 12 best healthcare ETFs.

In December 2022, BlackRock highlighted concerns about the performance for the healthcare sector in 2023. The previous year was rather challenging for equity and fixed income markets. However, the healthcare sector has historically shown resilience during such times. For 2023, BlackRock expected a volatile market, given the inflationary pressure and other geopolitical uncertainty. As per expectations, the sector has exhibited uncertainty in 2023. Over the past two years, the industry has reached record highs in performance. This can be directly attributed to the industry’s effective response to COVID-19. In 2021, the healthcare sector contributed around 19% of the GDP for the United States, while the medical expense for a person amounted to roughly $13,000. BlackRock reported that revenues from COVID-19 are going to normalize over the next few years, as the world moves on from the pandemic. However, the industry presents a valuable opportunity for innovation in creating mRNA-based technologies to treat cancer, Alzheimer’s, and Parkinson’s. While the pandemic forced drastic changes for the medical sector worldwide, it highlighted the efficacy of telehealth, remote monitoring, and cloud-management services within the industry.

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LBMC, a professional services CPA firm, valued the telehealth market at $48.3 billion in 2022, and it is forecasted to reach $57.1 billion in 2023. Similarly, in 2021, the worldwide big data healthcare market was worth $32.9 billion, and it is anticipated to be valued at $105.73 billion by 2030, showing a compound annual growth rate (CAGR) of 13.85%. With the recent hype about artificial intelligence, companies are expected to innovate and integrate it into their cloud-based data management portals. The industry faces significant challenges despite the recent performance boost since Covid-19. Perhaps the biggest concern in the US market is the shortage of medical professionals. In addition, the rising levels of inflation would increase healthcare premiums. Currently, the consumer price index is at 3%. In comparison, this was 9.1% in June 2022. Although the Federal Reserve has managed to reduce inflation, the officially targeted rate is 2%. To add to this, many experts expect unemployment levels to rise over the next year. Collectively, unemployment and inflation are expected to increase the likelihood of a recession over the next 12 months.

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While the healthcare sector continues to normalize in the post-pandemic world, the sector remains set to innovate – be it treatments, workforce management solutions, medical devices, or better healthcare plans. This article discusses some of the best healthcare ETFs that provide investors with access to market leaders like Thermo Fisher Scientific Inc. (NYSE:TMO), UnitedHealth Group Incorporated (NYSE:UNH), and AbbVie Inc. (NYSE:ABBV).

Our Methodology

We used an ETF screener and filtered out the best performing healthcare ETFs based on 5-year share price performance. We have also discussed the top holdings of the ETFs to offer better insight to potential investors. These ETFs have amassed significant gains over the past 5 years. The list is ranked in ascending order of the 5-year share price performance of these healthcare ETFs as of September 4, 2023. We tried to mention each industry ETF from the healthcare sector in our list. To see the best biotech ETFs, click here.

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Best Healthcare ETFs

12. Tema Oncology ETF (NASDAQ:CANC)

5 Year Performance as of September 4: 3.38%

Tema Oncology ETF (NASDAQ:CANC) is another actively-traded fund set out to achieve long-term growth through investments in companies within the field of oncology. Cancer remains the second leading cause of death around the world. Despite this, the sector is on the verge of a transformative era in therapeutics and diagnosis. Considerable advancements such as genetic sequencing are driving a surge in productivity. The increasing complexity of scientific breakthroughs, regulatory processes, and a rising number of investment prospects calls for specialized expertise to navigate this thrilling phase in human progress. This makes Tema Oncology ETF one of the best healthcare ETFs to buy. The fund was introduced in 2023, and has invested in 48 companies, while maintaining an expense ratio of 0.75%.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) dominates the portfolio of Tema Oncology ETF. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) focuses on the research, development, and commercialization for the treatment of disorders, such as neovascular glaucoma, cancer, and other degenerative diseases. On August 3, Regeneron Pharmaceuticals, Inc. reported a Q2 revenue of $3.16 billion, in addition to a non-GAAP EPS of $10. These figures surpassed Street expectations by $140 million and $0.34, respectively.

According to Insider Monkey’s second quarter database, 56 hedge funds were bullish on Regeneron Pharmaceuticals, Inc., as opposed to 54 hedge funds from the last quarter.

In addition to Thermo Fisher Scientific Inc., UnitedHealth Group Incorporated, and AbbVie Inc., Regeneron Pharmaceuticals, Inc. is one of the best healthcare stocks to buy.

Bronte Capital made the following comment about Regeneron Pharmaceuticals, Inc. in its Q3 2022 investor letter:

“There have been some bright spots in our long book. Regeneron Pharmaceuticals, Inc., a major position and a stock we wrote up in our June 2021 letter, has been one of the best performing stocks in the S&P 500 this year. Alas it has not been enough to offset some of our weaker stocks, let alone our overweight exposure to the UK (and Europe) which have suffered from both stock and currency weakness. We do not think we are bad at picking stocks on the long side and hope – reasonably we think – for better relative results in the future. Prior to COVID, our longs were markedly better than the index. Unfortunately, if you look at our long book this quarter and since the onset of the COVID pandemic, there is scant evidence that we have added any value by picking stocks to go long.”

11. iShares Biotechnology ETF (NASDAQ:IBB)

5 Year Performance as of September 4: 10.42%

iShares Biotechnology ETF (NASDAQ:IBB) aims to mimic the performance of the ICE Biotechnology Index, which consists of biotechnology sector equities listed in the United States. The fund was first introduced in February 2001. As of September 1, it manages total assets worth $7.6 billion, while featuring an expense ratio of 0.45%.

Amgen Inc. (NASDAQ:AMGN) stands out in the holdings for iShares Biotechnology ETF. Amgen Inc. (NASDAQ:AMGN) specializes in the research and development of medical treatments for issues in inflammation, oncology, bone health, cardiovascular disease, nephrology, and neuroscience. On August 3, Amgen Inc. announced a Q2 revenue of $6.98 billion and a non-GAAP EPS of $5.00, exceeding expectations by $300 million and $0.51, respectively.

According to Insider Monkey’s second quarter database, a total of 57 hedge funds were bullish on Amgen Inc. – this number remained unchanged from the last quarter.

Here is what Smead Capital Management has to say about Amgen Inc. in its Q3 2022 investor letter:

“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors were dominated by Amgen. Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”

10. Fidelity Select Medical Technology and Devices Portfolio (NASDAQ:FSMEX)

5 Year Performance as of September 4: 14.80%

Fidelity Select Medical Technology and Devices Portfolio (NASDAQ:FSMEX) primarily invests in companies involved in activities like research, development, manufacturing, distribution, supply, or sale of medical equipment, devices, and associated technologies. This ETF was introduced on April 28, 1998. As of the conclusion of August 2023, the net assets of the Fidelity Select Medical Technology and Devices Portfolio reached close to $6.5 billion, with an expense ratio of 0.70%. It is one of the best healthcare ETFs to invest in.

Danaher Corporation (NYSE:DHR) is one of the top holdings of Fidelity Select Medical Technology and Devices Portfolio. Danaher Corporation is a global company that creates, produces, and sells a range of professional, medical, industrial, and commercial products and services. According to Insider Monkey’s Q2 data, Danaher Corporation was part of 89 hedge fund portfolios, compared to 90 in the preceding quarter. Andreas Halvorsen’s Viking Global is the leading position holder in the company, with 4.25 million shares worth just over $1 billion.

Third Point Management made the following comment about Danaher Corporation in its second quarter 2023 investor letter:

“Danaher Corporation (NYSE:DHR) is our longest held investment and remains a top five position. Danaher has underperformed the S&P 500 this year due to a slowdown in the bioprocessing industry and more cautious spending by biopharma customers. Bioprocessing is a key end-market that drives more than a quarter of Danaher’s profits. Bioprocessing products are the main inputs that biopharma companies use to manufacture biologic drugs, which are the fastest growing category of drugs, growing low-to-mid-teens and representing a sizeable portion of the clinical pipeline.

The bioprocessing industry experienced significant growth in 2021 and 2022, driven by Covid vaccines and a strong biotech funding environment. Several participants, including Danaher, lowered their 2023 growth outlook in large part due to customer inventory de-stocking and biotech funding weakness. We anticipate that this slowdown is temporary, and the bioprocessing industry will return to normalized growth of high-single digit to mid-teens in 2024 and beyond.…” (Click here to read the full text)

9. First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH)

5 Year Performance as of September 4: 15.75%

First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH) targets investment outcomes that mimic those of the Nasdaq US Smart Pharmaceutical Index. Launched in September 2016, First Trust Nasdaq Pharmaceuticals ETF’s portfolio holds 45 stocks, with net assets worth $22.9 million. Currently, the ETF features an expense ratio of 0.60%. It is one of the best healthcare ETFs to invest in.

Johnson & Johnson (NYSE:JNJ) is the largest holding of First Trust Nasdaq Pharmaceuticals ETF. Johnson & Johnson is a market leader in consumer healthcare products around the world. On July 20, the company announced a Q2 revenue of $25.53 billion and a non-GAAP EPS of $2.80, surpassing the market estimates by $860 million and $0.18, respectively.

According to Insider Monkey’s second quarter database, a total of 88 hedge funds were bullish on Johnson & Johnson. This number increased from 86 in the last quarter.

ClearBridge Large Cap Value Strategy said this about Johnson & Johnson in its first quarter 2023 investor letter:

“The tech-dominated quarter was a headwind for both defensive and cyclical sectors, with shares of health care holdings such as UnitedHealth Group (UNH), Elevance (ELV) and Johnson & Johnson declining after a strong 2022.”

8. Invesco Dorsey Wright Healthcare Momentum ETF (NASDAQ:PTH)

5 Year Performance as of September 4: 16.29%

Launched in October 2006, Invesco Dorsey Wright Healthcare Momentum ETF (NASDAQ:PTH) tracks the performance for the Dorsey Wright Healthcare Technical Leaders Index. Usually, the ETF invests a minimum of 90% of its total assets in the securities that constitute the Index. The Dorsey Wright Healthcare Technical Leaders Index includes a minimum of 30 securities sourced from the NASDAQ US Benchmark Index. Like the index, the ETF undergoes quarterly rebalancing and reconstitution. As of August 31, the ETF maintains a net expense ratio of 0.60%. Invesco Dorsey Wright Healthcare Momentum ETF is one of the top healthcare ETFs to monitor.

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a significant holding of Invesco Dorsey Wright Healthcare Momentum ETF. IDEXX Laboratories, Inc. (NASDAQ:IDXX) specializes in the manufacture of veterinary products under three segments – Companion Animal Group, Water Quality Products, and Livestock, Poultry and Dairy. On August 1, the company reported a Q2 revenue of $943.6 million and a non-GAAP EPS of $2.70, exceeding the market consensus by $9.58 million and $0.23, respectively.

According to Insider Monkey’s second quarter database, a total of 43 hedge funds had invested in IDEXX Laboratories, Inc.. In comparison, 47 hedge funds were bullish on the stock during the last quarter.

Baron Small Cap Fund said this about IDEXX Laboratories, Inc. in its second quarter 2023 investor letter:

“We have had some extraordinary winners over time. For instance, we bought DexCom, Inc. at a $950 million market cap in 2012, and it is now valued at $50 billion (the stock has appreciated 41% annually since the Fund’s initial purchase). TransDigm Group Incorporated has grown from $1.1 billion at purchase to $49 billion presently (and the stock has appreciated 29% annually since the Fund’s initial purchase 17 years ago). IDEXX Laboratories, Inc. has gone from $2 billion at purchase to $42 billion over almost 15 years and the stock has appreciated 26% annually during that time frame. The Trade Desk is now valued at $38 billion and was $433 million when we first purchased shares over 6 years ago. The stock has appreciated almost 60% annually since our initial purchase. Pretty amazing. All four stocks have been solid performers this year, contributing nicely to the Fund’s returns.”

7. Global X Aging Population ETF (NASDAQ:AGNG)

5 Year Performance as of September 4: 25.74%

Introduced in May 2016, Global X Aging Population ETF (NASDAQ:AGNG) aims to invest in companies that focus on the expanding elderly demographic worldwide. Through its portfolio, the ETF has exposure to sectors like healthcare, pharmaceuticals, and senior living facilities. As of September 1, the ETF holds net assets valued at $54.2 million and has an expense ratio of 0.50%.

Alcon Inc. (NYSE:ALC) is a prominent stock in Global X Aging Population ETF’s portfolio. Alcon Inc. (NYSE:ALC) specializes in the development, manufacture, and distribution of eye-care products worldwide. On August 15, the company announced a Q2 revenue of $2.4 billion, along with a non-GAAP EPS of $0.69 – outperforming the Wall Street consensus by $20 million and $0.04, respectively.

According to Insider Monkey’s second quarter database, 25 hedge funds were bullish on Alcon Inc., as opposed to 30 hedge funds during the preceding quarter.

Madison Investors Fund said this about Alcon Inc. in its second quarter 2023 investor letter:

“In the second quarter, the top five contributors to performance were Alphabet, Copart, Alcon Inc., Parker-Hannifin, and PACCAR. Alcon continues to deliver above-market growth, driven by new product launches in contact lenses and a strong line-up in surgical products. Alcon’s superior innovation is really shining through, as are the operational and governance benefits of separating from Novartis. In addition, the eye surgery end market is steadily recovering from the Covid-triggered pauses in procedures.”

6. VanEck Biotech ETF (NASDAQ:BBH)

5 Year Performance as of September 4: 26.12%

VanEck Biotech ETF (NASDAQ:BBH) was launched in December 2011 with the goal of closely mirroring the performance of the MVIS® US Listed Biotech 25, which monitors the overall performance of companies engaged in activities related to genetic drug development and diagnostic equipment manufacturing. As of September 1, the ETF holds total net assets worth $485.5 million, while featuring an expense ratio of 0.35%. VanEck Biotech ETF is one of the best healthcare ETFs to invest in.

Gilead Sciences, Inc. (NASDAQ:GILD) is a prominent holding of VanEck Biotech ETF. Gilead Sciences, Inc. (NASDAQ:GILD) engages in the research, development, commercialization, and distribution of medical therapies for rare disorders. On August 3, Gilead Sciences, Inc. reported a Q2 revenue of $6.59 billion and a non-GAAP EPS of $1.34. While the revenue outperformed estimates by $140 million, the EPS fell short of the Street consensus by $0.30.

According to Insider Monkey’s second quarter database, 56 hedge funds were bullish on Gilead Sciences, Inc., as opposed to 60 from the previous quarter. Like Thermo Fisher Scientific Inc., UnitedHealth Group Incorporated, and AbbVie Inc., Gilead Sciences, Inc. is one of the top healthcare stocks to buy.

Ariel Global Strategy said this about Gilead Sciences, Inc. in its Q4 2022 investor letter:

“Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD. advanced in the quarter on positive data released in a study evaluating Trodelvy versus comparative chemotherapy in patients with metastatic breast cancer. The detailed findings increased investor confidence the drug would receive incremental approvals for a broader range of breast cancer treatments. Shares also received a boost on news that the TAF patent portfolio for HIV drugs will be extended from the middle of this decade through the early 2030s, creating greater visibility into the company’s long-term opportunity in the virology market.”

5. VanEck Pharmaceutical ETF (NASDAQ:PPH)

5 Year Performance as of September 4: 31.34%

Launched in December 2011, VanEck Pharmaceutical ETF (NASDAQ:PPH) mirrors the performance of the MVIS US Listed Pharmaceutical 25 Index. This index monitors the overall performance of companies engaged in the pharmaceutical industry. As of September 1, the ETF manages total net assets worth $430.82 million, while maintaining an expense ratio of 0.36%. It is one of the best healthcare ETFs to buy.

Novo Nordisk A/S (NYSE:NVO) is a prominent holding of VanEck Pharmaceutical ETF. Novo Nordisk A/S (NYSE:NVO) is a Danish pharmaceutical company that is engaged in the research, development, and manufacture of treatment therapies for diabetes, obesity, and rare diseases. On August 10, the company announced a Q2 revenue of DKK 54.3 billion, along with a GAAP EPS of DKK 8.63.

According to Insider Monkey’s second quarter database, a total of 43 hedge funds were bullish on Novo Nordisk A/S. In comparison, 46 hedge funds had invested in the company during the preceding quarter.

Rowan Street Capital made the following comment about Novo Nordisk A/S in its second quarter 2023 investor letter:

“Our current portfolio is made up of just 10 companies — we are very focused! We described our ‘10-Player All-Star Team’ philosophy in our Q1 2018 Letter (we encourage you to review it). We have been building this portfolio since our founding in 2015. In total, over the past 8 years, we bought stock in 47 different companies (that’s ~6 per year), and obviously, for anyone who is good at arithmetic, we sold 37 of them (~4.6 per year). We are constantly trying to learn from every decision (good or bad) that we make. We went through every position that we’ve sold since 2015 and analyzed how we would have done had we held on to those positions. The top 3 performing positions would have been: Chipotle (CMG) +630%, Tractor Supply (TSCO) +315% and Novo Nordisk A/S +387%. Your managers are at fault here because we sold all of these (in 2017-18) for non-fundamental reasons. All of these continued to be great businesses and management has executed at very high levels. In all three cases, we made a decision to sell because we thought the stock price got way ahead of itself.

Our main take-away lesson has to be Do NOT sell your winners and avoid adding more to your losers. Or as Peter Lynch once famously put it: “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.”

We were fortunate to purchase CMG, TSCO and NVO at very attractive prices when these companies hit a temporary speed bump in their business. These were businesses that were simple to understand and we knew them very well as we had a chance to study them thoroughly for some time prior to our purchase. However, when you choose to sell you get the cash proceeds. First, you have to pay the capital gains tax and then you have to make another ‘buy decision’ or, in a lot of cases, a number of them. The more decisions you make, the higher probability that you will make mistakes. More often than not, you end up buying a business that you know less well and end up partnering with the management team, whose character, management and capital allocation abilities may still be somewhat moot to you. These things take time to get comfortable with! As we have learned many times over throughout our investing careers, it is usually significantly more profitable and also more enjoyable to stay with the great business that you know very well and have a high confidence level in their management team. And this is exactly what happened with CMG, TSCO and NVO. It was a costly mistake for our investors and it’s an extremely valuable lesson that we have learned.”

4. Fidelity MSCI Health Care Index ETF (NYSE:FHLC)

5 Year Performance as of September 4: 38.46%

The Fidelity MSCI Health Care Index ETF (NYSE:FHLC) provides broad coverage of the entire U.S. healthcare market, encompassing over 300 companies of different sizes, including large, mid-sized, and small-cap, and spanning across more than 10 subsectors. This wide-ranging diversification reduces the fund’s reliance on dominant pharmaceutical giants and increases its exposure to sectors such as drug retailers and insurance within the healthcare industry. The benchmark index it tracks is the MSCI USA IMI Health Care 25/50 Index. As of September 1, 2023, Fidelity MSCI Health Care Index ETF features an expense ratio of 0.08% and holds a portfolio containing 406 stocks.

Pfizer Inc. (NYSE:PFE) is a prominent holding of Fidelity MSCI Health Care Index ETF. Pfizer Inc. engages in the worldwide exploration, production, promotion, and distribution of biopharmaceutical products. It provides pharmaceuticals and vaccines across a range of therapeutic fields, including cardiovascular health, metabolic conditions, migraine, women’s health, and COVID-19. According to Insider Monkey’s second quarter database, Ric Dillon’s Diamond Hill Capital is a notable stakeholder of the company, with 6.9 million shares worth $253 million.

Diamond Hill Capital made the following comment about Pfizer Inc. in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc., media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

3. Vanguard Health Care Index Fund (NYSE:VHT)

5 Year Performance as of September 4: 39.24%

Vanguard Health Care Index Fund (NYSE:VHT) aims to replicate the performance of the Spliced U.S. Investable Market Health Care 25/50 Index, which serves as a reference point for assessing the performance of stocks within the healthcare sector. This ETF is managed passively, employing a full-replication approach when feasible and a sampling method if regulatory requirements necessitate it. It includes shares of companies engaged in offering medical and health care products, services, technology, and equipment. Vanguard Health Care Index Fund was established on January 26, 2004, and currently holds a portfolio of 416 stocks, with an associated expense ratio of 0.10%. It is one of the best healthcare ETFs to buy.

AbbVie Inc. (NYSE:ABBV) is one of the top holdings of Vanguard Health Care Index Fund. AbbVie Inc. engages in the global discovery, development, production, and distribution of pharmaceutical products. According to Insider Monkey’s second quarter database, AbbVie Inc. was part of 74 hedge fund portfolios, compared to 75 in the last quarter. D E Shaw is a prominent stakeholder of the company, with 1.6 million shares worth $224 million.

Baron Health Care Fund made the following comment about AbbVie Inc. in its second quarter 2023 investor letter:

“Apart from stock selection, the Fund also benefited from its lower exposure to AbbVie Inc. (NYSE:ABBV), whose shares were down almost 15% in the Benchmark due to concerns about the company’s growth profile after the loss of exclusivity for lead drug Humira. We exited our position during the quarter. We sold AbbVie Inc. due to our less optimistic view of the company’s pipeline and long-term growth profile.”

2. Health Care Select Sector SPDRFund (NYSE:XLV)

5 Year Performance as of September 4: 44.32%

Health Care Select Sector SPDRFund (NYSE:XLV)’s primary goal is to deliver investment outcomes that closely mirror the price and yield performance of the Health Care Select Sector Index, minus associated expenses. This index is designed to offer specific representation of companies operating in different sectors within the healthcare industry, including pharmaceuticals, health care equipment and supplies, health care providers and services, biotechnology, life sciences tools and services, and health care technology. Health Care Select Sector SPDRFund was established on December 16, 1998, and as of September 4, 2023, it holds a portfolio consisting of 65 stocks, with an associated expense ratio of 0.10%. It is one of the best healthcare ETFs to buy.

UnitedHealth Group Incorporated (NYSE:UNH) is the largest holding of Health Care Select Sector SPDRFund. It operates as a diversified healthcare company in the United States. According to Insider Monkey’s Q2 database, 111 hedge funds were bullish on UnitedHealth Group Incorporated, with Rajiv Jain’s GQG Partners holding the biggest stake.

L1 Capital International Fund had this to say about UnitedHealth Group Incorporated in its second quarter 2023 investor letter:

“Close observers of the Fund will note the increased exposure to healthcare, currently 13% of the portfolio. Healthcare is generally less macro-sensitive than some other sectors. In a reversal of market sentiment compared to 2022, the healthcare sector has been under modest pressure due to what we consider to be some short-term transitory issues, while technology, particularly anything to do with AI, has become the market’s dish du jour. We have been selectively increasing our investment in a few very high-quality healthcare businesses at prices we consider to be fair. UnitedHealth Group Incorporated is now a top 10 holding, and our investment thesis is outlined in this report.

We have previously written on our exposure to taxes through our investment in Intuit and its market leading TurboTax franchise (Intuit also owns the QuickBooks small business accounting franchise, Credit Karma and Mailchimp). UnitedHealth Group (UnitedHealth) is leading the charge to postpone the inevitable, while lowering overall healthcare system costs.

U.S. health spending has outpaced GDP growth for decades, with spending on healthcare increasing from around 12% of GDP in the 1980s to nearly 20% today, driven by advancements in healthcare capabilities and an aging population with increased life expectancy…” (Click here to read the full text)

1. iShares U.S. Medical Devices ETF (NYSE:IHI)

5 Year Performance as of September 4: 45.16%

iShares U.S. Medical Devices ETF (NYSE:IHI) aims to replicate the investment performance of the Dow Jones U.S. Select Medical Equipment Index, which consists of U.S. stocks within the medical devices industry. This ETF was founded on May 1, 2006, and as of September 1, 2023, it possesses total assets valued at $5.6 billion. iShares U.S. Medical Devices ETF’s portfolio includes 61 stocks, and it maintains an expense ratio of 0.40%. It is one of the premier healthcare ETFs to invest in.

iShares U.S. Medical Devices ETF’s largest holding is Thermo Fisher Scientific Inc. (NYSE:TMO). The company offers life sciences solutions, analytical tools, specialized diagnostics, laboratory equipment, and biopharmaceutical services worldwide. According to Insider Monkey’s second quarter database, Thermo Fisher Scientific Inc. was part of 103 hedge fund portfolios, compared to 98 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is the leading position holder in the company, with a position worth $1.65 billion.

Weitz Partners III Opportunity Fund made the following comment about Thermo Fisher Scientific Inc. in its second quarter 2023 investor letter:

“Portfolio activity this quarter included opportunistically initiating a position in life sciences tool and equipment maker Thermo Fisher Scientific Inc. (NYSE:TMO), a long-time holding of other Weitz portfolios, at an attractive valuation.”

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