iShares Global Healthcare ETF

IXJ

Market cap $3.97B

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.

Outlook for pharma sector as Trump pushes for regulatory changes. The impact of tariffs on drugmakers.

This article provides a top-down analysis of the healthcare sector using value, quality, and momentum metrics. Healthcare providers and pharmaceuticals/biotechnology are the most compelling subsectors based on value and quality scores. IXJ ETF offers global healthcare exposure but remains concentrated in U.S. stocks and top holdings; it has trailed XLV in long-term returns but is more diversified.

Look at ETFs to safeguard your portfolio as declining consumer confidence, sluggish growth and persistent inflationary pressures increase the likelihood of the U.S. economy slipping into a recession in 2025.

Investors cooled to the healthcare sector in 2024, which dramatically trailed global and US equity markets for the year. any investors are now asking: how will the policy changes under a new US administration affect healthcare companies?

This article provides a top-down analysis of the healthcare sector, focusing on fundamental and momentum metrics. The healthcare sector is currently overvalued by about 13% relative to 11-year averages, with pharmaceuticals/biotechnology being the most overvalued. IXJ offers global healthcare exposure but is heavily weighted in U.S. companies and has underperformed XLV for 10 years.

With escalating geopolitical tensions and unfavorable inflation trends in the U.S., increasing exposure to defensive sectors emerges as a smart investment strategy to navigate the potentially uncertain economic landscape of 2025.