Unlocking Cures: How AI is Reshaping Cancer Research & Healthcare ETFs?

Group 1: AI Integration in Healthcare - The integration of artificial intelligence (AI) in the U.S. healthcare industry has rapidly accelerated, transforming clinical practice, diagnostics, and operational efficiency across hospitals and providers [1] - AI has provided immense benefits across various areas of healthcare, including personalized medicine and automated workflows, despite challenges like data governance and regulatory frameworks [1] Group 2: Market Contribution and Growth - In 2024, North America contributed approximately 44.7% of global market revenue for AI in oncology, indicating AI's significant role as a growth catalyst in the American cancer research market [2] - The positive outlook for the healthcare sector is reflected in the improved performance of several major healthcare ETFs in 2025 compared to their 2024 performance [2] Group 3: Presidential Initiative - On September 30, 2025, an executive order was signed to double the U.S. National Institutes of Health's investment in a childhood cancer data initiative with an additional $50 million, recognizing pediatric cancer as the leading cause of disease-related death for American children [3] - The initiative aims to leverage American AI innovation to enhance data infrastructure, analyze complex biological systems, and design better clinical trials [3] Group 4: Impact on Healthcare ETFs - The executive order is expected to boost healthcare ETF performance, particularly for funds focused on pediatric cancer innovation, benefiting companies like Johnson & Johnson, Merck, Eli Lilly, and Boston Scientific [4] - Healthcare ETFs such as Vanguard Health Care ETF (VHT) and iShares Global Healthcare ETF (IXJ) are anticipated to see improved performance due to their exposure to these companies [4] Group 5: Factors Boosting Healthcare ETFs - A combination of strong M&A activity, high-impact pharmaceutical and medical device product launches, favorable demographic trends from an aging U.S. population, and increased AI usage in healthcare are driving healthcare ETFs' performance in 2025 [5] Group 6: Vanguard Health Care ETF (VHT) - VHT provides exposure to U.S. companies involved in healthcare equipment, services, pharmaceuticals, and biotechnology, with top holdings in Eli Lilly (10.16%), AbbVie (5.38%), and Johnson & Johnson (5.07%), all engaged in pediatric cancer research [7] - VHT rose 1% in 2024 and is up 2.3% so far in 2025, with fees of 9 basis points [8] Group 7: iShares Global Healthcare ETF (IXJ) - IXJ offers exposure to a broad range of biotechnology companies, with top holdings in Exelixis Inc. (1.97%) and United Therapeutics (1.96%), both involved in pediatric cancer research [9] - IXJ increased by 0.7% in 2024 and surged 11.3% so far in 2025, with fees of 35 basis points [9]