By sector

Health-care ETFs

A simple way to own a slice of the companies that make medicines, medical devices, and healthcare technology — all in one fund.

See Health-care ETFs New to ETFs? →

Pharma, biotech and medical devices

What Health-care ETFs are

A health-care ETF is a single fund that holds many health-related companies at once — drugmakers (pharma), biotech firms (companies developing new treatments), medical-device makers, and health insurers. Instead of picking one company, you own a small piece of the whole sector.

People tend to need medicine and care whatever the economy is doing. Because of that, health care is often called a more 'defensive' sector, meaning its ups and downs can be a bit gentler than the wider market's.

But it's still only one slice of the world. A health-care ETF leaves out every other industry, so it's more concentrated and can move sharply on things like drug-trial results or new rules. Many beginners treat it as a small 'satellite' — a little extra alongside a broad world ETF — rather than a first building block.

At a glance

What's inside~40–130 health-care companies

Risk levelMedium — narrower than a world ETF

Typical fee (TER)~0.15%–0.45% a year

TypeSector fund (one industry only)

CharacterOften seen as more defensive

Why beginners look here

Seen as more defensive

People need healthcare in good times and bad, so the sector's swings are often gentler than the wider market's — though it can still fall.

One industry, not many

You own only health-care firms, so you miss out when other sectors lead — and feel it more when this one struggles.

Global reach in one buy

A single fund can spread your money across drugmakers and device firms in many countries at once.

What to look for

Overlap with what you own A world ETF already holds big health-care names, so check you're not doubling up on the same giants.

How concentrated it is Some funds lean heavily on a handful of huge pharma companies — read the top-ten holdings before deciding.

The yearly fee (TER) Sector funds often cost a little more than broad ones; ~0.15%–0.45% a year is a common range.

What's actually inside 'Health care' can mean steadier pharma or more volatile biotech — the label alone won't tell you the mix.

Popular Health-care ETFs

A few of the largest, pulled live from the screener — an example, not a recommendation.

Good to know

Is this too risky for a beginner?

It's riskier than a broad world ETF because it's just one industry, so many beginners keep it small — a side holding rather than the core of their portfolio.

Isn't health care 'safe'?

It's often steadier than other sectors, but it can still fall — a failed drug trial or a rule change can move prices quickly. 'Defensive' doesn't mean risk-free.

Do I need this if I already own a world ETF?

Not necessarily. A world fund already includes health-care companies; a sector ETF simply adds extra weight to that one area, which is a choice rather than a must.