5 Best Healthcare ETFs To Buy

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 (NYSE:XLV) 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 (NYSE:XLV). 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 (NYSE:UNH), with Rajiv Jain’s GQG Partners holding the biggest stake.

L1 Capital International Fund had this to say about UnitedHealth Group Incorporated (NYSE:UNH) 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 (NYSE:UNH) 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)