5 Best Healthcare ETFs To Buy

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 (NYSE:VHT) 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 (NYSE:VHT). AbbVie Inc. (NYSE:ABBV) engages in the global discovery, development, production, and distribution of pharmaceutical products. According to Insider Monkey’s second quarter database, AbbVie Inc. (NYSE:ABBV) 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. (NYSE:ABBV) 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.”