Best 4 ASX healthcare ETFs to buy in November

Healthcare is one of the most essential and rapidly growing sectors and these ASX-listed ETFs make it simple for investors to gain exposure to leading global healthcare companies which are poised for long-term growth.

Ishares Global Healthcare ETF (ASX: IXJ)

Ishares Global Healthcare ETFgives investors wide exposure to some of the top healthcare, biotech and pharma companies around the world through the S&P Global 1200 Healthcare Sector Index.
The fund holds a mix of large, mid and small cap firms from developed markets which makes it well diversified and stable with good long term growth chances.
IXJ has an expense ratio of 0.41% yearly and the fund has a 12-month trailing yield of 1.48% which it pays on a semi-annual basis.
Top holdings are Eli Lilly, Johnson & Johnson, Abbvie, UnitedHealth Group, Novartis, AstraZeneca, Abbott Labs and Roche.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) 

gives exposure to 50 of the world’s strongest healthcare companies with good fundamentals and strong long term growth outlook.
By giving equal weight to all holdings, HLTH maintains real diversification across top names in pharma, biotech, medical devices and healthcare services.

The ETF has an expense ratio of 0.45% per year and in the last one year it delivered a return of around 7.45%.
Some of its top holdings are Illumina, Intuitive Surgical, Regeneron Pharmaceuticals, Eli Lilly, Samsung Biologics and Hoya Corp which are all big leaders in their own areas.

Betashares Global Healthcare Currency Hedged ETF (ASX: DRUG) 

gives investors exposure to some of the biggest healthcare companies around the world except Australia as it  follows the Nasdaq Global ex-Australia Healthcare Hedged AUD Index which includes many top names in pharma, biotech and medical tech space.
DRUG has an expense ratio of 0.57% making it quite cost effective for investors who want global healthcare exposure without worrying much about currency fluctuations.

Its top holdings are Eli Lilly, Johnson & Johnson, AbbVie, UnitedHealth Group, AstraZeneca, Roche, Novartis and Abbott Laboratories.
The US takes up about 77.6% of the fund’s exposure while the rest comes from countries like Switzerland, UK and Denmark.

Global X S&P Biotech ETF (ASX: CURE) 

gives investors a chance to invest in the biotechnology sector which is one of the most active parts of global healthcare as it follows the S&P Biotechnology Select Industry Index.
The index uses an equal-weight method so that even smaller biotech firms with high growth potential get same weight as big ones, helping to spread out company risks.
CURE has a yearly expense ratio of 0.45% and in the past year it gave around 11% return, as biotech shares bounced back strongly after a rough period before.
Some of its top holdings are CRISPR Therapeutics, AbbVie, Amgen, Moderna, Regeneron Pharmaceuticals and United Therapeutics which are all known for their work in gene therapy, vaccine making and drug innovations.

(Source: Company Announcements)
 

FAQ About ASX healthcare ETFs

1. Should you invest $1,000 in BetaShares Australian Quality ETF right now?

VEYE, one of the foremost stock market research companies, and a glove investing specialist, disclosed yesterday what they consider to be the 5 top stocks for buying at the moment, where BetaShares Australian Quality ETF was off the list.

The firm's top-tier research counsel has made thousands of investors discover the best-performing opportunities that have given remarkable returns through time.*
And at this moment, VEYE's professionals are thinking that there are 5 stocks that could be more advantageous purchases…

2. What factors should I consider before buying a healthcare ETF on the ASX?

• Expense ratio (management fees), a lower expense ratio is preferable.
• Portfolio exposure, worldwide as opposed to Australian healthcare.
• Top holdings, companies with high market capitalisation versus companies with medium market capitalisation.
• Currency risk, ETFs that are unhedged as opposed to hedged ones.
• Liquidity and flexibility are improved by higher trading volume.

3. Are healthcare ETFs a good buy right now?

Definitely, the healthcare industry grants stability of a defensive nature and slow but steady growth. Factors such as the increasing proportion of the elderly, health technology advancements, and the overall global demand for healthcare are still supporting long-term gains during the time of market fluctuations and volatility.

4. What is a healthcare ETF on the ASX and how does it work?

These funds are managed in accordance with a certain group of healthcare stocks (pharmaceuticals, devices, biotech) and are trading on the Australian Securities Exchange (ASX) just like shares.

5. Is now a good time to buy healthcare ETFs on the ASX, given current market conditions?

The ageing population, along with the increased needs for health services, has given the sector a good push. However, regulatory risks, interest rates, and valuations still have a say; therefore, timing and fund selection become very important factors.