Best Healthcare ETFs (2026)
Which healthcare sector fund to hold — 11 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- best risk-adjusted return (Sharpe 2.48)
- strongest 3-year return at +79.7%
- cheapest in the group at 0.08%
- largest and most liquid at $40.6B
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 11 funds, not across the whole market.
All 11 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 XBIState Street SPDR S&P Biotech ETF | Healthcare | 0.35% | 0.36% | +71.3% | +79.7% | 26.7% | -33.0% | 2.48 | $10.7B | 73.4 | B |
| 2 VHTVanguard Health Care Index Fund ETF Shares | Healthcare | 0.09% | 0.94% | +23.4% | +29.2% | 15.2% | -16.9% | 1.22 | $20.4B | 73.0 | B |
| 3 XLVState Street Health Care Select Sector SPDR ETF | Healthcare | 0.08% | 1.12% | +21.4% | +27.4% | 15.7% | -17.1% | 1.05 | $40.6B | 71.6 | B |
| 4 FHLCFidelity MSCI Health Care Index ETF | Healthcare | 0.08% | 1.32% | +23.6% | +29.2% | 15.2% | -16.9% | 1.22 | $3.2B | 70.1 | B |
| 5 XPHState Street SPDR S&P Pharmaceuticals ETF | Healthcare | 0.35% | 0.35% | +57.7% | +61.0% | 22.6% | -23.6% | 2.33 | $428M | 69.1 | B |
| 6 IBBiShares Biotechnology ETF | Healthcare | 0.44% | 0.19% | +39.3% | +46.7% | 20.3% | -24.9% | 1.69 | $9.1B | 69.0 | B |
| 7 PPHVanEck Pharmaceutical ETF | Healthcare | 0.36% | 1.97% | +26.4% | +46.2% | 18.2% | -18.1% | 1.18 | $879M | 65.1 | B |
| 8 IYHiShares U.S. Healthcare ETF | Healthcare | 0.38% | 4.28% | +21.0% | +25.8% | 15.7% | -17.9% | 1.02 | $3.2B | 62.9 | C |
| 9 IHFiShares U.S. Healthcare Providers ETF | Healthcare | 0.38% | 0.94% | +30.5% | +11.0% | 20.9% | -29.9% | 1.22 | $1.2B | 57.3 | C |
| 10 ARKGARK Genomic Revolution ETF | Healthcare | 0.75% | — | +42.4% | -0.5% | 43.1% | -51.7% | 0.87 | $1.7B | 47.5 | D |
| 11 IHIiShares U.S. Medical Devices ETF | Healthcare | 0.38% | 0.49% | -17.5% | -9.2% | 19.6% | -26.6% | -1.15 | $3.0B | 32.0 | F |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
Healthcare funds split into broad sector funds — insurers, device makers and pharma together — and biotech funds, which are far more volatile and driven by trial outcomes rather than earnings.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best healthcare ETF?
XBI ranks highest of the 11 healthcare funds tracked, scoring 73.4 (B).
Is healthcare a defensive sector?
Broad healthcare has historically held up better than the market in downturns, since demand for medical care is relatively insensitive to the economy. Biotech behaves quite differently and is not defensive.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.