Strategists recommend healthcare ETFs as pharma and biotech draw interest
Updated
Updated · Barron's · May 6
Strategists recommend healthcare ETFs as pharma and biotech draw interest
7 articles · Updated · Barron's · May 6
Brian Storey, Greg Swenson and Steven Conners highlighted State Street’s $37.8bn XLV, Vanguard’s $18.6bn VHT and biotech-focused funds as healthcare lags the market in early second quarter.
They said pharmaceuticals and biotechnology look attractive because valuations are stronger, regulatory pressures from Medicaid cuts, tariffs and drug pricing are easing, and AI could accelerate drug discovery and early research.
Healthcare is also pitched as a defensive hedge against geopolitical and economic risk, though medical-device stocks may remain pressured by tariffs and riskier biotech ETFs may not suit all investors.
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With new tariffs and deep budget cuts, is the healthcare sector's 'safe harbor' status a myth?