Jasmine Birtles
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The Best Healthcare ETFs to Buy in 2025
Ruby Layram
20th May 2025
Healthcare is one of the largest global industries, bringing in billions of dollars each year and helping to improve people’s lives. This makes it a very appealing investment for UK investors, who want to gain exposure to a sector that will always have a role to play.
Luckily, there are plenty of healthcare ETFs to consider in 2025. In this guide, we will take a look at our top picks and explain how to invest in healthcare ETFs as a UK investor.
Also read: The best Global ETFs to Buy in 2025
Why Healthcare ETFs Might Be a Smart Buy in May 2025
So, why is everyone suddenly chatting about healthcare ETFs this spring? Well, a few pretty big reasons, actually…
1. Ageing Populations Mean Growing Demand
Let’s be honest, we’re not getting any younger. Around the world, people are living longer, and that means more demand for healthcare services, medicines, and support systems. From joint replacements to heart meds, it’s a booming industry that doesn’t really go out of fashion.
2. Healthcare Is (Generally) Recession-Resistant
Even when times get tough and people cut back on holidays or streaming services, they don’t tend to scrimp on their health. That makes healthcare stocks, and ETFs that bundle them together, a bit more stable when the economy wobbles.
Handy, especially if you’re after something more defensive in your portfolio.
3. Innovation Is Moving at Lightning Speed
2025 is shaping up to be a huge year for biotech and health tech. We’re talking about AI-powered diagnostics, gene editing, robotic surgery, and personalised medicine.
Healthcare isn’t just about hospitals anymore. It’s about cutting-edge tech and massive breakthroughs.
And the right ETF gives you a slice of all that action, without having to bet on one company doing all the heavy lifting.
4. Global Health Spending Is Going Up
Governments around the world are pumping money into healthcare infrastructure, especially after the lessons learned from the pandemic.
Whether it’s improving the NHS or ramping up emergency preparedness, there’s money flowing into the sector from all directions.
5. It’s an Easy Way to Diversify
With one investment, you get access to a whole bunch of companies — big pharma, medical devices, digital health platforms, and more. That’s less risk than trying to pick a single winner and more chance of catching the next big thing.
Also read: The best defence ETFs to buy in 2025
The Best Healthcare ETFs to Buy in 2025
Now, let’s jump into the best healthcare ETFs to buy in 2025 as a UK investor.
1. SPDR MSCI World Health Care UCITS ETF (LSE: WHEA)
This one’s a global healthcare smoothie, with ingredients from the likes of Johnson & Johnson, Pfizer, and UnitedHealth.
What’s to like?
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It gives you access to developed market healthcare giants, not just the usual UK suspects.
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Performance has been a bit of a mixed bag lately (down around 6.8% so far this year), but over the long term, it’s shown solid growth.
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Annual returns have averaged over 7.5% over the past decade — not too shabby.
This ETF is great for long-term investors who want a one-stop shop for global healthcare.
2. iShares S&P 500 Health Care Sector UCITS ETF (LSE: IUHC)
Want a slice of the American healthcare market? This ETF focuses entirely on big US players- the heavy-hitters like Merck, J&J, and UnitedHealth Group.
Why it’s worth a look:
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The US is the heartland of medical innovation.
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It’s a fab way to tap into new treatments, cutting-edge tech, and big pharma profits.
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You’re getting exposure to a huge chunk of the global healthcare market, all from one country.
Investors who want to ride the wave of American healthcare innovation, without betting on just one stock.
3. HANetf The Healthcare ETF (LSE: WELL)
This one’s a bit different. Rather than simply tracking an index, it’s actively managed — so the fund managers can switch things up when markets get twitchy.
Here’s what makes it interesting:
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Combines traditional healthcare stocks with emerging trends like digital health and biotech.
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Aims for long-term growth, while keeping an eye on short-term wobbles.
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It’s a little more adventurous than your typical tracker fund — which could pay off if healthcare keeps evolving like it has been.
This ETF is ideal for those who like the idea of active management and want a bit more exposure to innovation and wellness trends.
4. Franklin Future of Health and Wellness UCITS ETF
Now here’s a modern twist. This ETF doesn’t just look at hospitals and medicine, it also dives into health foods, fitness, mental wellbeing, and everything in between.
Why it stands out:
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It’s all about preventative care and healthy living — something that’s booming thanks to Gen Z and Millennials.
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You’ll find stocks linked to sustainable wellness products, fitness tech, nutrition, and more.
Ethical investors or anyone who believes wellness is the future (and that health isn’t just about pills and prescriptions).
5. Vanguard Health Care ETF (NYSE: VHT)
Yes, this one’s US-domiciled (so bear in mind the tax implications), but Vanguard is the go-to name for low-cost, high-quality ETFs.
Here’s why we like it:
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Ultra-low fees (it’s Vanguard, after all).
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Massive diversification across the entire U.S. healthcare sector.
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Brilliant option if you’re planning to invest for the long haul and want reliability.
The Vanguard Health Care ETF is excellent for long-term investors who want a dependable performer with minimal costs.
Which Healthcare ETF is Best?
Alright, so you’re sold on the idea of investing in healthcare, brilliant! But with so many ETFs floating around, how do you pick the right one?
Don’t worry, it’s not as complicated as it sounds. Here’s what to look out for when choosing your perfect match:
1. What kind of healthcare do you want to invest in?
Not all healthcare ETFs are created equal. Some go heavy on big pharma (think companies like Pfizer and Johnson & Johnson), while others are all about biotech and the more experimental, fast-growth side of the industry.
Then there are ETFs focused on medical devices, digital health, or even global healthcare. So, have a think, do you want solid, established names, or are you chasing exciting innovations?
2. Check the holdings
Before you dive in, have a quick peek at what companies the ETF actually invests in.
You can usually find this info on the provider’s website (or platforms like JustETF or Morningstar). Are there names you recognise? Are they spread out across different areas or countries?
A bit of variety can help cushion any bumps along the way.
3. Look at the costs
All ETFs come with a fee, called the expense ratio, which is usually a small percentage taken each year.
Generally, the lower the better, especially if you’re planning to hold long-term. Most healthcare ETFs are reasonably priced, but it’s still worth checking.
A high fee can eat into your profits over time.
4. Performance history (but don’t obsess over it)
Yes, past performance can give you an idea of how the ETF has behaved, but remember — it’s not a guarantee of future returns. That said, if something’s been a consistent underperformer, it might be worth digging into why.
5. Where is it based?
Some ETFs are listed in the US, others in Europe or the UK. If you’re investing from the UK, look for UCITS ETFs- these are designed to meet EU/UK standards and are more tax-efficient for UK investors.
It also means they’re easier to buy on UK platforms like Hargreaves Lansdown, AJ Bell or eToro.
6. Liquidity (a.k.a. how easy it is to buy/sell)
The more popular an ETF, the easier it’ll be to buy and sell without weird price swings. If an ETF has a decent amount of daily trading volume, you’ll likely have a smoother experience.
Don’t overthink it. Start by asking what area of healthcare excites you or aligns with your goals, and then go from there. With a little research, you’ll be able to find an ETF that fits your individual goals and investment strategy.
With an ageing population, increasing demand for biotech breakthroughs, and more people taking charge of their health, the sector isn’t slowing down anytime soon.
And with ETFs, you can sit back and let the fund do the hard work. No need to spend hours trying to decide between Pfizer and AstraZeneca.
Just don’t forget: all investing carries risk, and past performance isn’t a guarantee of future results. It’s always wise to speak to a financial adviser if you’re unsure.
But if you’re in it for the long haul and want to invest in something that’ll always be in demand – healthcare ETFs might just be a healthy addition to your portfolio.
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