Investing Assets & Markets Exchange-Traded Funds Invest in the Health Care Sector With ETFs List of Health Care ETFs By Mark Kennedy Mark Kennedy Mark Kennedy is an expert in investment and exchange-traded funds. He was an ETF options trader on the Philadelphia Stock Exchange floor and Vice President of Derivatives Trading for Goldman Sachs. Kennedy's trading positions were not limited to the oil ETF but included other ETFs such as the Qs. learn about our editorial policies Updated on August 26, 2021 Reviewed by Doretha Clemon Reviewed by Doretha Clemon Doretha Clemons, Ph.D., MBA, PMP, has been a corporate IT executive and professor for 34 years. She is an adjunct professor at Connecticut State Colleges & Universities, Maryville University, and Indiana Wesleyan University. She is a Real Estate Investor and principal at Bruised Reed Housing Real Estate Trust, and a State of Connecticut Home Improvement License holder. learn about our financial review board Fact checked by Vikki Velasquez Fact checked by Vikki Velasquez Vikki Velasquez is a freelance copyeditor and researcher with a degree in Gender Studies. Previously, she conducted in-depth research on social and economic issues such as housing, education, wealth inequality, and the historical legacy of Richmond VA as well as their intersectionality while working for a community leadership nonprofit. Vikki leverages her nonprofit experience to enhance the quality and accuracy of Dotdash's content. learn about our editorial policies In This Article View All In This Article What Are Health Care ETFs? List of Health Care ETFs Advanced Health Care ETFs Where to Find ETFs Photo: Tetra Images/Brand X Pictures/Getty Images Without a doubt, the health care industry is one of the biggest sectors in our economy, and investing in this sector is rich in the debate on its regulation, high costs, control of the industry, and more. So as an investor, if you have an opinion, you can try to capitalize on that opinion and take advantage of a health care industry ETF. Below, we'll explain what health care ETFs are, share a list of standard ETFs, and highlight some advanced ETFs. What Are Health Care ETFs? First, let's review what an ETF is. An ETF, or exchange-traded fund, is a type of investment security that groups financial assets together. This basket of securities can include stocks, bonds, commodities, currencies, and more. They are similar to mutual funds, but unlike mutual funds, ETFs trade like stocks. An investor can buy and sell ETF shares during trading hours on an exchange. The diversification and convenience of exchange-traded funds have made them popular with investors. Health care ETFs are funds comprised of securities from a variety of companies within the health care industry. Note The range of companies in health care ETFs includes those in pharmaceuticals, consumer health, medical devices, biotechnology, health insurance, and more. There are quite a few reasons you may want to consider an investment in a health care ETF. You can: Take advantage of a bullish or bearish opinion based on your research. Make a play on the price swings in the sector due to the current political climate. Utilize an ETF as part of a top-down investment strategy for the health care sector. Include different sector ETFs for an overall diversified strategy for your portfolio. Hedge any risk you have related to the health care industry from other investments. List of Health Care ETFs If you are looking to gain exposure to the health care sector, while also reaping the benefits of an ETF, the list below will be a great starting point. Note Although we share a comprehensive list, it isn't expected, nor recommended, that investors buy a share of every security in the list. Investors should run their own due diligence to find out if an ETF is fit for them. At a high level, you want to be sure that the fund investment strategy is in line with what you are looking for. Following that, you should check a few key things that all investors should check on any funds they invest in, even outside of the health care sector. General points include a fund that has low fees, high volume, stable management, and solid performance vs. its benchmark. BFIT - Global X Health & Wellness ETF BTEC - Principal Healthcare Innovators Index ETF CURE - Direxion Daily Healthcare Bull 3X Shares ETF FHLC - Fidelity MSCI Health Care Index ETF FXH - First Trust Health Care AlphaDEX ETF IHF - iShares U.S. Healthcare Providers ETF IXJ - iShares Global Healthcare ETF IYH - iShares U.S. Healthcare ETF JHMH - John Hancock Multifactor Healthcare ETF PTH - Invesco DWA Healthcare Momentum ETF RXD - ProShares UltraShort Health Care ETF RXL - ProShares Ultra Health Care ETF RYH - Invesco S&P 500 Equal Weight Health Care ETF SPXV - ProShares S&P 500 Ex-Health Care ETF VHT - Vanguard Health Care ETF XHE - SPDR S&P Health Care Equipment ETF XHS - SPDR S&P Health Care Services ETF As you can see, we have a variety of ETFs coming from different providers and focusing on different strategies. You see ETFs from certain providers such as SPDR, Vanguard, Fidelity, and ProShares. There are funds that focus on health care equipment, health care services, and health care innovation. Additionally, there are a few advanced healthcare ETFs. Advanced Health Care ETFs Several of the ETFs within the list above are considered to be "advanced." They are advanced due to the complexity, structure, and risk involved. Note Higher risk can mean higher rewards, but the rewards are not guaranteed. Let's explain a few of the categories of advanced ETFs. Leveraged ETFs Leveraged ETFs use leverage with hopes of amplifying gains. A few from our list of health care ETFs include: CURE - Direxion Daily Healthcare Bull 3X Shares ETF RXD - ProShares UltraShort Health Care ETF RXL - ProShares Ultra Health Care ETF As an example, CURE is a fund that is bullish and levered 3X. That means that fund expects its securities to increase in price. Leverage helps increase gains but also increases loss potential. At 3X leverage, if a normal fund went up $1, this fund would go up $3, and vice versa if it went down. Inverse ETFs There was also an inverse ETF on the list: RXD - ProShares UltraShort Health Care ETF Inverse ETFs aim to deliver the opposite performance of the index it tracks. This ETF is short the market, or bearish. The fund expects its basket of securities to decrease in price. If the underlying securities move down in price, this fund makes money. If they move up in price, the fund loses money. Please keep in mind, as with any investment, ETFs and ETNs are not without risk, especially if you implement advanced strategies such as leveraged or inverse funds. However, if you conduct thorough research and complete your due diligence, you should be able to find the best fund for your particular needs. You shouldn't hesitate to call your broker or consult a financial professional if you have any questions or concerns. Where to Find ETFs Here are several links to the websites for each ETF provider behind these products. You can drill down and analyze performance, holdings, and any other data you need to make an informed decision. ProShares ETFs State Street Global Advisors Vanguard ETFs Invesco ETFs iShares ETFs First Trust ETFs Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Vanguard. "Buying & Selling ETFs." Technofunc. "Sectors of Healthcare Industry." U.S. Securities and Exchange Commission. "SEC-FINRA Investor Alert on Leveraged and Inverse ETFs."