4 ETFs in the Healthcare Sector

The healthcare sector is lagging behind the broader market this year, but there are extreme disparities within the sector itself. While biotech is experiencing one of the strongest waves of mergers and acquisitions in recent years, medical device manufacturers are among the biggest disappointments of 2026. The following four popular ETFs illustrate how differently one can invest within a single sector and why choosing a specific healthcare fund matters more this year than ever before.

Healthcare is often referred to as a classic defensive sector. People need medications, diagnostics, and surgeries regardless of where the economic cycle stands, and demand for healthcare is therefore among the most stable in the entire market. In 2026, however, this theory is being challenged by a reality in which the entire sector is lagging behind the broader S&P 500 index, and within the sector, there are huge differences between individual segments.

The main driver of this year’s developments is a…