5 Best Healthcare ETFs To Buy Now (2024)

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2. Health Care Select Sector SPDR Fund (NYSE:XLV)

5-year Share Price Performance as of March 19: 59.81%

Health Care Select Sector SPDR Fund (NYSE:XLV) aims to match the performance of the Health Care Select Sector Index. This index represents the health care sector of the S&P 500 Index and includes companies from pharmaceuticals, health care equipment and supplies, health care providers and services, biotechnology, life sciences tools and services, and health care technology industries. The ETF features an expense ratio of 0.09% as of March 19, 2024, with a portfolio comprising 64 stocks. Its assets under management as of the same date totaled $40,644.38 million. Health Care Select Sector SPDR Fund (NYSE:XLV) is one of the best healthcare ETFs to buy.

Danaher Corporation (NYSE:DHR) is one of the top holdings of Health Care Select Sector SPDR Fund (NYSE:XLV). Danaher designs, manufactures, and markets professional, medical, industrial, and commercial products and services. It operates through Biotechnology, Life Sciences, and Diagnostics segments. On February 22, Danaher Corporation (NYSE:DHR) declared a $0.27 per share quarterly dividend, a 12.5% increase from its prior dividend of $0.24. The dividend is payable on April 26, to shareholders on record as of March 28.

According to Insider Monkey’s fourth quarter database, Danaher Corporation (NYSE:DHR) was part of 90 hedge fund portfolios, compared to 103 in the last quarter.

Headwaters Capital Management stated the following regarding Danaher Corporation (NYSE:DHR) in its fourth quarter 2023 investor letter:

“Danaher Corporation’s (NYSE:DHR) acquisition offer for ABCM was approved by shareholders on 11/6/23. Shareholders approved the deal based on trough fundamentals (potential China weakness) and trough valuation (the broader market bottomed on 10/27). DHR took advantage of broader market fears and mis-aligned management incentives to acquire Abcam at a cheap price. While disappointing, ABCM was still a very successful investment for Headwaters as it outperformed the market by +27% during our ownership. The cash received from the acquisition was immediately re-deployed into the newest addition to the portfolio, IPAR (discussed below).”

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