iShares Global Healthcare ETF

IXJ

Market cap $3.67B

VanEck Pharmaceutical ETF offers a concentrated portfolio focused exclusively on drug manufacturers. iShares Global Healthcare ETF provides broader diversification across more than 100 companies in the global medical sector.

Investors are questioning the staying power of medical technology (medtech) stocks, which have fallen from grace since the COVID-19 pandemic. The starting point is to distinguish between medtech and other healthcare industries.

While the broad market is overpriced, value still exists in the healthcare sector, especially in healthcare providers and healthcare equipment. iShares Global Healthcare ETF offers global healthcare exposure with slightly better fundamentals and lower company-specific risk than XLV. 10 stocks cheaper than their peers in February.

After a late-2025 rebound eased policy fears, healthcare ETFs like IXJ are gaining attention as investors position for a sector comeback in 2026.

The healthcare sector has experienced one of its most significant de-ratings in 35 years, with valuations now at a 30% discount to the broader market. Healthcare trades at historical valuation discounts across multiple metrics.

Healthcare providers and pharmaceuticals/biotechnology subsectors are undervalued versus 11-year averages, with pharma/biotech also showing strong quality metrics. iShares Global Healthcare ETF (IXJ): an alternative to XLV with international diversification and better fundamentals. 10 healthcare stocks cheaper than their peers in October.

As AI-fueled gains spark bubble warnings, investors are eyeing defensive ETFs in consumer staples, utilities and healthcare for safety.

AI's growing role in cancer research, and a new federal push for pediatric oncology, are powering gains in key healthcare ETFs.

Tough moment for healthcare: low momentum, high volatility, and downgraded EPS. It is evident when looking at the IXJ ETF, focused on global healthcare: 70% US, 30% international. But relative valuations have remained attractive: healthcare trades at a forward P/E in the 30th percentile of the past 30 years' distribution.

IXJ offers global healthcare exposure, capturing demographic shifts and innovation trends beyond U.S.-centric ETFs for a more balanced risk/reward profile. The fund's heavy allocation to pharmaceuticals and biotechnology targets high-growth areas like obesity drugs, oncology, and AI-driven healthcare equipment. Despite a higher expense ratio and currency/regulatory risks, IXJ's global diversification and defensive sector positioning justify its buy rating.