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Hi, Tigers 🐯

Despite ongoing cost pressures, the healthcare sector’s growth outlook remains constructive. An ageing population and continued breakthroughs in medical innovation continue to provide long-term support

Looking to invest in this sector but don’t wanna pick individual stocks? ETFs offer a simple and cost-efficient way to gain exposure!

Of course, near-term challenges are real.According to a McKinsey report dated 12 January, the US healthcare system is under increasing financial pressure. Industry operating margins are expected to fall from 11.2% in 2019 to 8.9% in 2024, with payers and healthcare providers most affected.

However, analysts expect conditions to improve gradually over the next three years.With an ageing population and steady demand for new therapies, healthcare remains a core building block in long-term investment portfolios.

So Tigers, how are you positioning?

Going for low-cost core ETFs, or adding higher-growth healthcare themes?

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Below, we highlight seven healthcare ETFs, from low-cost core exposure to higher-growth themes, aligned with the next wave of opportunities. Feel free to open Tiger's Cash Boost Account to enlarge your buying power or through options strategy.

7 Selected ETF:From Core Broad-Based to Sub-Sectors

1. $Health Care Select Sector SPDR Fund(XLV)$ -Low-Cost ⚡

• Fee rate: 0.08%

• Features: Tracks the S&P 500 Healthcare Index, offering broad exposure to around 60 large and well-established US healthcare companies. Holdings are transparent, with top positions including Eli Lilly, Johnson & Johnson, and AbbVie.

• Suited for: Investors seeking a stable, low-cost healthcare ETF as a core long-term holding.

2. $Vanguard Health Care ETF(VHT)$ – Broader Ecosystem 🏗️

• Fee rate: 0.09%

• Features: Tracks a broader healthcare index than $Health Care Select Sector SPDR Fund(XLV)$ , covering around 395 companies across large-, mid-, and small-cap stocks. This results in a smaller average market capitalisation (about US$113 billion) and slightly higher volatility than $Health Care Select Sector SPDR Fund(XLV)$ (beta 0.68 vs 0.59). The ETF offers wider exposure across the healthcare ecosystem.

• Suited for: Investors who want broad exposure to healthcare companies of all sizes and are comfortable with slightly higher volatility to capture long-term growth.

3. $iShares U.S. Medical Devices ETF(IHI)$ – Focus on Steady-Growth Medical Devices 🧪

Features:

• Direct industry exposure: Provides focused access to the fast-growing US dollar–denominated medical devices sector, which supplies essential equipment used daily by hospitals.

• What it covers: Includes products such as surgical robots, diagnostic tools, imaging systems, and implantable devices.

• Index & holdings: Tracks the Dow Jones U.S. Select Medical Devices Index, with major holdings in established industry leaders like Abbott, Stryker, Boston Scientific, and Intuitive Surgical.

• More stable demand:Unlike biotech companies that rely on clinical trial results, medical device firms benefit from steady demand. This demand is driven by hospital equipment upgrades, the wider use of minimally invasive surgery, and improvements in diagnostic technology, resulting in a more stable growth profile for the portfolio.

4. Rowe Price Health Sciences Fund (PRHSX) – Actively Managed, Seeking Excess Returns 🧠

• Fee: 0.80%

• Features: Actively managed fund that aims to outperform the market through stock selection and timing decisions. Fees and portfolio turnover are higher than index funds. The fund mainly invests in pharmaceutical, medical device, and biotechnology companies.

• Suited for: Investors who believe skilled fund managers can add value and are willing to accept higher fees, wider performance differences, and greater reliance on the manager’s decisions.

5. $iShares Biotechnology ETF(IBB)$ – A Mainstream Choice in the Biotechnology Sector 🧱

• Expense: 0.44%

• Features: Tracks the biotechnology sector with exposure to 256 stocks, mainly large and well-established biotech companies. The sector is highly volatile, as stock prices are strongly influenced by clinical trial results and regulatory approvals.

• Suited for: Investors with a higher risk tolerance who are looking for potential high returns from a niche sector. Best used as a small satellite allocation, rather than a core holding.

6. $Spdr S&P Biotech Etf(XBI)$ – A High-Beta, Equal-Weighted Biotechnology Aggressive Tool 🎯

• Aggressive growth focus: Targets the fastest-growing segments of the biotechnology sector and is designed for investors seeking high growth.

• Equal-weight and higher risk: Uses an equal-weight approach, so smaller biotech companies have a bigger impact on performance. This leads to higher volatility and a high-risk, high-return profile.

• Broad innovation exposure: Holds around 135 biotechnology stocks, providing diversified access to areas such as cancer therapies, gene therapy, RNA drugs, and diagnostic innovations without the need to pick individual companies.

7. $iShares Global Healthcare ETF(IXJ)$ – Global Diversification 📈

• Expense: 0.40%

• Features: Tracks global healthcare companies, offering diversification beyond the US market. Holdings span pharmaceutical, medical device, and biotechnology firms. While some top holdings overlap with US-focused ETFs like $Health Care Select Sector SPDR Fund(XLV)$ , this fund also includes major international names such as Roche, Novartis, and AstraZeneca.

Summary: Healthcare funds range from low-cost broad index ETFs with fees as low as 0.08%, to thematic ETFs targeting specific areas such as medical devices, biotechnology, or global healthcare.

This gives investors flexibility to match their risk appetite and investment goals—from more stable options like $iShares U.S. Medical Devices ETF(IHI)$ to higher-volatility choices such as $Spdr S&P Biotech Etf(XBI)$ .

Despite short-term challenges, long-term growth drivers remain strong. Taking a diversified and strategic approach through funds may help investors manage market cycles and position for opportunities in 2026 and beyond.