Jasmine Birtles
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The Best Healthcare ETFs to Buy in 2025
Ruby Layram
29th Oct 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 exposure to a sector that will always have a vital role to play.
Luckily, there are plenty of healthcare ETFs to consider in 2025. In this guide, we’ll take a look at the best healthcare ETFs and explain how to invest in healthcare funds as a UK investor.
Also read: The best Global ETFs to Buy in 2025
Why Healthcare ETFs Might Be a Smart Buy in 2025
So, why is everyone suddenly chatting about **healthcare ETFs** this year? Well, there are a few big reasons investors are eyeing the **healthcare sector** in 2025…
1. Ageing Populations Mean Growing Demand
Let’s be honest — we’re not getting any younger. Around the world, people are living longer, which means growing 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. This steady demand makes **healthcare ETFs** a popular long-term investment.
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 cut back on healthcare. That makes **healthcare ETFs** — which group together multiple **healthcare stocks** — 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 technology and massive breakthroughs. Investing in a **healthcare ETF** gives you exposure to all that innovation without needing to pick individual companies.
4. Global Health Spending Is Going Up
Governments worldwide are pumping money into healthcare infrastructure, especially after lessons from the pandemic. Whether it’s improving the NHS or ramping up emergency preparedness, money is flowing into the **healthcare sector** from all directions — boosting the potential of **healthcare funds** and ETFs.
5. It’s an Easy Way to Diversify
With one investment, you get access to a wide range of companies — from big pharma to medical devices and digital health platforms. That’s less risk than trying to pick a single winner and more chance of catching the next big thing through a diversified **healthcare ETF**.
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 ETF offers global exposure to the healthcare sector, with holdings including Johnson & Johnson, Pfizer, and UnitedHealth.
What’s to like?
- Gives access to developed market healthcare giants, not just UK names.
- Performance has been mixed recently (down around 6.8% this year), but long-term growth remains solid.
- Average annual returns over the past decade exceed 7.5% — impressive for a defensive sector.
This ETF is ideal for long-term investors who want a one-stop shop for global healthcare exposure.
2. iShares S&P 500 Health Care Sector UCITS ETF (LSE: IUHC)
Want a slice of the American healthcare market? This **healthcare ETF** focuses entirely on big US players — Merck, Johnson & Johnson, and UnitedHealth Group.
Why it’s worth a look:
- The US is the heartland of medical innovation.
- Gives access to new treatments, cutting-edge tech, and big pharma profits.
- Provides exposure to a major portion of the global healthcare market from one region.
It’s great for investors looking to ride the wave of American healthcare innovation through a focused ETF.
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 adapt to changing market conditions.
Here’s what makes it interesting:
- Combines traditional healthcare stocks with emerging trends like digital health and biotech.
- Aims for long-term growth while managing short-term volatility.
- More adventurous than a typical tracker fund — ideal if you want active exposure to healthcare innovation.
This **healthcare ETF** is perfect for investors who want active management and exposure to innovation and wellness trends.
4. Franklin Future of Health and Wellness UCITS ETF
This modern **healthcare fund** doesn’t just invest in hospitals and medicine — it also targets health foods, fitness, mental wellbeing, and sustainable living.
Why it stands out:
- Focuses on preventative care and healthy lifestyles — booming trends among Gen Z and Millennials.
- Includes stocks linked to wellness products, fitness tech, and nutrition.
Ideal for ethical investors who believe wellness and preventative healthcare are the future.
5. Vanguard Health Care ETF (NYSE: VHT)
Yes, this one’s US-domiciled (so bear in mind the tax implications), but Vanguard is known for low-cost, high-quality ETFs.
Here’s why we like it:
- Ultra-low fees (it’s Vanguard, after all).
- Massive diversification across the entire U.S. healthcare sector.
- A strong long-term performer with minimal costs — a reliable **healthcare ETF** for patient investors.
Which Healthcare ETF is Best?
Alright, so you’re sold on investing in healthcare — brilliant! But with so many options out there, how do you pick the **best healthcare ETF** for your portfolio?
Don’t worry, it’s not as complicated as it sounds. Here’s what to look out for when choosing the right **healthcare fund** for you:
1. What kind of healthcare do you want to invest in?
Not all **healthcare ETFs** are created equal. Some focus on big pharma (like Pfizer and Johnson & Johnson), while others target biotech or digital health innovation.
Decide whether you prefer stability from established names or growth potential from cutting-edge trends.
2. Check the holdings
Before you invest, review what companies the ETF holds. You can find this on the provider’s website or platforms like JustETF or Morningstar. A well-diversified **healthcare ETF** spreads risk across multiple countries and sub-sectors.
3. Look at the costs
All **healthcare ETFs** have an expense ratio — a small annual fee. The lower, the better, especially for long-term investors. Even small differences in fees can affect your long-term returns.
4. Performance history (but don’t obsess over it)
Past performance can offer insights into an ETF’s consistency, but remember it’s not a guarantee of future success. Still, a track record of steady performance can be a good sign.
5. Where is it based?
Some ETFs are listed in the US, others in Europe or the UK. If you’re a UK investor, look for **UCITS healthcare ETFs** — they’re designed to meet UK/EU standards and are more tax-efficient.
They’re also easy to buy on 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 is to trade. High liquidity helps you buy and sell without major price swings.
Don’t overthink it — start with what area of healthcare aligns with your goals, and go from there. With a bit of research, you’ll find a **healthcare ETF** that fits your investment strategy and goals.
With an ageing population, growing biotech innovation, and more people focusing on health and wellbeing, the **healthcare sector** shows no signs of slowing down.
And with **healthcare ETFs**, you can sit back and let the fund do the hard work — no need to choose between Pfizer and AstraZeneca yourself.
Just remember: all investing carries risk, and past performance isn’t a guarantee of future results. Always speak to a financial adviser if you’re unsure.
But if you’re in it for the long haul and want exposure to a sector that will always be in demand, **healthcare ETFs** could be a healthy addition to your investment portfolio.
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