Healthcare ETFs gain as sector seen as defensive with strong long-term growth potential.

Healthcare sector ETFs like VHT, XLV, and FHLC are attracting investor capital as a defensive alternative to volatile tech and AI stocks. Healthcare spending is expected to grow 5.4% annually through 2034, outpacing GDP and supporting steady demand. Large-cap healthcare companies are driving earnings growth, with VHT offering broad diversification and strong historical returns. However, valuations are high, with many holdings trading above 25 times trailing earnings, and regulatory or interest rate changes could prompt sector rotation.

The healthcare sector ETF XLV is currently priced at USD 187.31 on Pluang as of November 9, 2026, showing a positive 1.36% change in one day. XLV's market cap stands at $49.93 billion, reflecting its significant presence in the healthcare investment space. Investors typically hold XLV for about 98 days, indicating moderate-term interest in this defensive sector amid market rotations.