In this piece, we will take a look at the five best performing healthcare ETFs in 2023. If you want to learn more about the healthcare industry, its constituents, some top firms, and recent trends, then check out the 10 Best Performing Healthcare ETFs in 2023.
5. IQ Healthy Hearts ETF (NYSE:HART)
Year to date returns: 1.91%
IQ Healthy Hearts ETF (NYSE:HART) was set up in 2021 and is part of the IndexIQ fund family. It has $7.8 million in net assets. The ETF tracks the IQ Candriam Healthy Hearts Index, and as its title suggests, the IQ Healthy Hearts ETF (NYSE:HART) focuses on investing in companies that provide treatments for heart diseases or have products that help people maintain their heart health. Its top three stock picks are UnitedHealth Group Incorporated (NYSE:UNH), Novo Nordisk A/S (CPH:NOVO-B.CO), and Eli Lilly and Company (NYSE:LLY).
4. Harbor Health Care ETF (NYSE:MEDI)
Year to date returns: 6.59%
Harbor Health Care ETF (NYSE:MEDI) was set up in November 2022. It has $4.2 million in net assets and it is part of the Hart fund family. The ETF focuses on investing primarily in American healthcare stocks, and the weighted average market capitalization of its 32 holdings is $148 billion. The average return on equity is a sizeable 14.59%, with the top three holdings of the Harbor Health Care ETF (NYSE:MEDI) being Eli Lilly and Company (NYSE:LLY), Ascendis Pharma A/S (NASDAQ:ASND), and UnitedHealth Group Incorporated (NYSE:UNH).
3. ProShares UltraShort Health Care (NYSE:RXD)
Year to date returns: 19.53%
ProShares UltraShort Health Care (NYSE:RXD) is an ETF part of the Proshares fund family. It was set up in 2007 and has $2 million in net assets. As its title suggests, the ProShares UltraShort Health Care (NYSE:RXD) seeks to post returns when the healthcare industry is facing a downturn in the stock market. Its investment philosophy seeks twice the negative returns of the underlying index of healthcare stocks that trade on the S&P 500. More than 30% of the ETF’s investments are in the pharmaceutical sector, with healthcare equipment and services providers also accounting for a significant chunk.
2. ProShares UltraShort Nasdaq Biotechnology (NASDAQ:BIS)
Year to date returns: 29.81%
ProShares UltraShort Nasdaq Biotechnology (NASDAQ:BIS) is another short ETF. Like the previous ETF, it also seeks the negative returns of an underlying index, which means that when the index is down, the ProShares UltraShort Nasdaq Biotechnology (NASDAQ:BIS) is posting gains. The ETF’s underlying index is the Nasdaq Biotechnology Index, and naturally, this means that more than 80% of its investments are in biotechnology companies.
1. Direxion Daily S&P Biotech Bear 3X Shares (NYSE:LABD)
Year to date returns: 49.38%
The final ETF on our list of the best healthcare ETFs in 2023 is another short ETF. This fund, the Direxion Daily S&P Biotech Bear 3X Shares (NYSE:LABD), is part of the Direxion Funds fund family. It was set up in 2015, and has $61 million in net assets. The returns are higher because when compared to the previous two short ETFs, this ETF seeks to post 300% of the negative returns of its underlying index. Its benchmark index is the S&P Biotechnology Select Industry Index (SPSIBITR).
Disclosure: None. You can also take a look at 12 Best Vanguard ETFs for Portfolio Diversification and 10 Best Mid-Cap Growth ETFs.
