Are Healthcare ETFs Good Long Term Investment?
With increasing global spending on R&D and product innovation in healthcare sector, multiple opportunities are opening for investors. In such a scenario, healthcare ETFs offer long-term growth potential, exposure to several companies within the healthcare sector and cost-effectiveness compared to actively managed mutual fund.
The iShares Global Healthcare ETF (ASX: IXJ)
offers investors access to top global healthcare companies by following the S&P Global 1200 Healthcare Sector Index. IXJ invests broadly across biotechnology, pharmaceuticals, medical equipment and healthcare service providers. Some of the well know names include Eli Lilly, United health Group, Novo Nordisk and Johnson & Johnson. IXJ has a fund size near $1.3B and charge a management fee ranging from 0.39% to 0.46%.
IXJ has delivered a YTD return of approximately 0.4% and a 1-year return near -5.5%. The ETF’s track record over the past 3 and 5 years stands at 4.97% and 6.96% per annum respectively. This underscores its medium to long term appeal.
The VanEck Global Healthcare Leaders ETF (ASX: HLTH)
provides exposure to a portfolio of 50 major fundamentally strong healthcare companies that is focusing on developed markets, with Australia excluded. The fund focuses on companies those are exhibiting growth at a reasonable price (GARP) attributes across factors like growth, value, profitability and cash flow. It charges a management fee of 0.45% per annum and had total net assets of approximately $48.5M as of August 2025.
HLTH has generated a one-year return of around 1.4% and a three-year annualized return of nearly 4.2%. It has a dividend yield of 0.78% with once-a-year payouts.
The BetaShares Global Healthcare Currency Hedged ETF (ASX: DRUG)
follows the Nasdaq Global ex-Australia Healthcare Hedged AUD Index. It provides a Australian Dollar hedged exposure to large global healthcare companies, excluding Australia. The fund utilizes a passive index-tracking approach and charge a management fee of 0.57% per annum. It distributes income semi-annually.
DRUG has given returns of approximately -14.3% over the past year (net of fees) and an annualized return of 4.3% over three years. The fund aims to reduce currency risk through hedging which makes it a cost-effective option for investors seeking global healthcare sector exposure.
The Global X S&P Biotech ETF (ASX: CURE)
provides exposure to companies those are benefiting from advances in genomic science, gene editing, genetic medicine and biotechnology. It tracks the S&P Biotechnology Select Industry Index with equal weighted approach. The fund charges a management fee of 0.45% and had asset under management around $30M as of mid-2025.
CURE’s recent performance shows a 1-year return of approximately -9.5% while the three-year annualized return stands near 3.7%. This ETF suits investors that are looking for high growth specialized biotech companies.
(Source: Company Announcements)
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