5 Best Healthcare ETFs To Buy Now

3. iShares U.S. Healthcare ETF (NYSE:IYH)

5-year Share Price Performance as of March 19: 59.06%

iShares U.S. Healthcare ETF (NYSE:IYH) aims to replicate the performance of the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index, which provides exposure to healthcare equipment and services, pharmaceuticals, and biotechnology companies in the United States. As of March 18, 2024, the ETF holds nearly $3.5 billion in net assets, with an expense ratio of 0.40%, and a portfolio consisting of 112 stocks. iShares U.S. Healthcare ETF (NYSE:IYH) ranks 3rd on our list of the best healthcare ETFs. 

Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the largest holdings of the iShares U.S. Healthcare ETF (NYSE:IYH). Thermo Fisher is a global provider of life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services. On February 21, Thermo Fisher Scientific Inc. (NYSE:TMO) declared a $0.39 per share quarterly dividend, an 11.4% increase from its prior dividend of $0.35. The dividend is payable on April 15, to shareholders on record as of March 15. 

According to Insider Monkey’s fourth quarter database, 111 hedge funds were bullish on Thermo Fisher Scientific Inc. (NYSE:TMO), compared to 109 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the leading stakeholder of the company, with 3.14 million shares worth $1.67 billion. 

Weitz Partners III Opportunity Fund made the following comment about Thermo Fisher Scientific Inc. (NYSE:TMO) 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.”