Healthcare equipment sector undervalued; global healthcare ETF IXJ underperforms US-focused XLV by 2% annually

The healthcare equipment subsector is currently undervalued compared to its historical averages, while other healthcare subsectors appear slightly overvalued. The iShares Global Healthcare ETF (IXJ), which holds 110 stocks with 72% exposure to US companies, offers diversified global healthcare investment. Despite lower company-specific risk and better valuation, IXJ has underperformed the US-focused Health Care Select Sector SPDR ETF (XLV) by about 2% annually over both short and long timeframes. This analysis is part of a monthly series evaluating healthcare sector ETFs based on value, quality, and momentum metrics.

The article highlights the valuation nuances within healthcare ETFs like IXJ and XLV. On Pluang, the Health Care Select Sector SPDR Fund (XLV) trades at USD 168.27 with a slight 1-day gain of 0.30%. This data is current as of Sep 17, 2026 22:03 WIB.