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The Best Healthcare ETFs to Buy in 2026 (UK Investor Guide)
Ruby Layram
5th Oct 2026
Healthcare is one of the largest industries on the planet, worth trillions of dollars a year and helping to improve people’s lives. That makes it an appealing place to put your money if you want exposure to a sector that will always have a vital role to play.
Luckily, there are plenty of healthcare ETFs for UK investors to choose from. In this guide, we compare the best healthcare ETFs available in October 2026, explain what to look for, and show you how to invest in them. Easy peasy.
Also read: The best Global ETFs to Buy in 2025
What are healthcare ETFs?
An ETF (exchange-traded fund) is a basket of investments you buy in one go, like a single share. A healthcare ETF holds shares in lots of healthcare companies, such as drugmakers, biotech firms, medical device makers and health insurers. Instead of betting on one winner, you spread your money across the whole sector.
Why healthcare ETFs could be worth a look in 2026
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
People around the world are living longer, which means more demand for medicines, treatments and care. It’s a sector 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, they tend not to cut back on healthcare. That can make healthcare stocks steadier when the economy wobbles. Notice we said generally: healthcare shares can still fall, and they did lag the wider market for a while.
Handy, especially if you’re after something more defensive in your portfolio.
3. Big themes are driving the sector
Fund managers point to a rebound in biotech in 2026, helped by a wave of takeovers and positive trial results, plus the continuing boom in weight-loss and diabetes drugs (known as GLP-1s). AI in drug discovery is also on investors’ radar. On the flip side, medical device companies have had a tougher run, and drug pricing and tariff policy in the US remain things to watch.
4. Valuations looked cheap
Some managers, such as Janus Henderson in December 2025, argued healthcare shares were trading at some of their lowest valuations relative to other sectors in history. Cheap does not mean guaranteed to rise, but it’s part of why the sector has been getting more attention.
5. It’s an easy way to diversify
One purchase gives you big pharma, medical devices and biotech together. That’s less risk than picking a single stock.
Also read: The best defence ETFs to buy in 2025
Best healthcare ETFs to buy in the UK: October 2026 comparison
Here’s how the funds in this guide stack up. Performance is shown as published by each provider and covers different dates, so don’t compare the columns too literally.
| Healthcare ETF | LSE ticker | Charge | Approach | Recent performance |
|---|---|---|---|---|
| SPDR MSCI World Health Care | WHEA (USD) / HEAW (GBP) | 0.30% | Global, passive | +19.57% 1yr to 31 Aug 2026 |
| iShares MSCI World Health Care Sector Advanced | WHCS | 0.18% | Global, passive | +18.69% 1yr to 1 Oct 2026 |
| iShares S&P 500 Health Care Sector | IUHC (USD) / IHCU (GBP) | 0.15% | US only, passive | +14.1% 1yr to 30 Sep 2026 |
| Harbor Health Care (ex-HANetf Healthcare ETF) | WELL (USD) / WELP (GBP) | 0.89% | US-focused, active | +16.84% 12m to 31 Aug 2026 |
| Franklin Future of Health and Wellness | FOHW | 0.30% | Global wellness theme, passive | Check factsheet (data to 31 Jul 2026) |
| iShares Healthcare Innovation | HEAL | 0.40% | Global innovation theme, passive | +32.43% 1yr to 28 Sep 2026 |
Charges are ongoing charges / total expense ratios from each provider. All six are UCITS funds, meaning they’re designed to be sold to UK retail investors.
1. SPDR MSCI World Health Care UCITS ETF (WHEA)
This is a one-stop shop for developed-market healthcare, tracking an index of around 111 companies. Its top holdings at the time of writing were Eli Lilly (11.21%), Johnson & Johnson (7.58%), AbbVie (5.60%), Merck (4.33%) and UnitedHealth (4.04%), with Swiss and UK names such as Roche, Novartis and AstraZeneca also in the top ten. Around 47% of the fund is in pharmaceuticals.
What’s to like: It returned 19.57% over the year to 31 August 2026 and 8.94% a year on average over ten years, though the five-year figure was a more modest 4.44% a year. It costs 0.30% and reinvests income (accumulating).
The catch: Eli Lilly alone is over a tenth of the fund, so it’s more concentrated than it looks. The GBP line trades as HEAW.
2. iShares MSCI World Health Care Sector Advanced UCITS ETF (WHCS)
This is a new entry for 2026 and the cheapest global healthcare option here at 0.18%. It holds 112 companies worldwide and was up 18.69% over the year to 1 October 2026 (6.35% so far this year). It pays income twice a year and is classified as an Article 8 fund, meaning it promotes environmental or social characteristics.
The catch: its index screens holdings on sustainability factors, so it won’t match a plain healthcare index exactly.
3. iShares S&P 500 Health Care Sector UCITS ETF (IUHC)
Want a slice of the American healthcare market? This ETF holds 61 US companies, from pharma and biotech to medical equipment and health insurers. It costs 0.15%, is up 9.83% this year and returned 14.1% over the year to 30 September 2026. The US is the heartland of medical innovation, so it’s a focused way to back it.
The catch: it’s US-only, so you’re exposed to US drug pricing policy and the US dollar. The GBP line trades as IHCU.
4. Harbor Health Care UCITS ETF (WELL)
You might know this one as the HANetf Healthcare ETF; it’s now the Harbor Health Care UCITS ETF, managed by Westfield Capital Management. Unlike the others, it’s actively managed, so a fund manager picks around 30 to 50 US healthcare stocks (47 at the time of writing) rather than tracking an index. Top holdings include Ascendis Pharma, Eli Lilly and Natera.
It returned 16.84% over 12 months to 31 August 2026.
The catch: active management costs more, at 0.89% a year, which is several times the cost of the passive funds above. It’s more adventurous and best for investors who want a manager making the calls.
5. Franklin Future of Health and Wellness UCITS ETF (FOHW)
This is more of a lifestyle play. It tracks an index of companies delivering sustainable health and wellness products and services, launched in July 2023, with an ongoing charge of 0.30%. Top holdings include Eli Lilly, Johnson & Johnson, AbbVie, Abbott Laboratories and Novo Nordisk.
The catch: it’s a younger fund with a shorter track record, and its sustainability focus means it’s not a pure traditional healthcare tracker.
Bonus: iShares Healthcare Innovation UCITS ETF (HEAL)
For investors who want biotech and medtech innovation, this fund holds around 200 companies globally and returned 32.43% over the year to 28 September 2026 (up 20.65% this year). Its three-year return is 13.15% a year. It charges 0.40%.
The catch: thematic funds tend to swing harder in both directions, so only hold a slice in this one. iShares notes one of its listing lines will be delisted on 15 December 2026, so check which line your platform uses.
Which healthcare ETF is best?
There’s no single best healthcare ETF. It depends on what you want:
- Simple, global and cheap: WHCS (0.18%) or WHEA (0.30%).
- US healthcare only: IUHC at 0.15%.
- Active management: Harbor WELL, but expect to pay 0.89%.
- Innovation or wellness themes: HEAL or FOHW, as smaller satellite holdings.
How to choose a healthcare ETF: 6 things to check
- What kind of healthcare? Big pharma, biotech, medical devices or digital health.
- Holdings. Check the top ten on the provider’s website. Top-heavy funds carry concentration risk.
- Costs. Every ETF charges an annual fee. The lower, the better, so compare it with what you get.
- Performance history. Useful context, but never a promise of future returns.
- UCITS status. As a UK investor, stick to UCITS healthcare ETFs, which are built for UK and EU retail investors.
- Currency and listing. Many funds have both USD and GBP lines. Check which one your platform shows, as it affects currency conversion.
How to invest in healthcare ETFs in the UK
- Choose a platform. Compare investment platforms such as Hargreaves Lansdown, AJ Bell, Trading 212, Freetrade or eToro, and check the ETF you want is available.
- Pick your account. Holding your ETF in a Stocks and Shares ISA means gains and income are tax-free, up to your £20,000 yearly allowance.
- Search by ticker. Look up the ticker, such as WHEA or IUHC, and double-check the full fund name.
- Start small or drip-feed. Investing a fixed amount monthly spreads your risk.
- Keep it in proportion. Healthcare works well as part of a diversified portfolio rather than all of it.
Healthcare ETF FAQs
Are healthcare ETFs a good investment?
They can suit long-term investors who want diversified exposure to a sector with steady long-term demand. Like all investments, they can fall in value and you could lose money.
What is the cheapest healthcare ETF in the UK?
Among the funds in this guide, the iShares S&P 500 Health Care Sector UCITS ETF (IUHC) charges 0.15%, and the iShares MSCI World Health Care Sector Advanced UCITS ETF (WHCS) charges 0.18%. Charges can change, so check the provider’s website.
Can UK investors buy US healthcare ETFs?
Generally not US-listed ones like VHT. But UCITS ETFs such as IUHC give UK investors exposure to US healthcare companies.
Can I hold a healthcare ETF in an ISA?
Usually yes, but it depends on your platform, so check before you buy.
The bottom line
With an ageing population, ongoing biotech breakthroughs and a growing focus on wellbeing, the healthcare sector shows no signs of going out of fashion. With healthcare ETFs, you can let the fund do the hard work, with no need to choose between Eli Lilly and AstraZeneca yourself.
But healthcare isn’t risk-free: drug pricing rules, patent expiries and the concentration of a few giant companies can all hit returns. Start small, be patient, and think of healthcare as one ingredient in a diversified portfolio.
Disclaimer: This article is for informational and educational purposes only and is not regulated financial advice. Investing involves risk, and the value of investments can go down as well as up, so you could get back less than you put in. Past performance is not a guide to future returns. Fund details were taken from the providers’ own websites between 1 and 2 October 2026 and can change. Do your own research or speak to a regulated financial adviser if you’re unsure.
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