Sector Alert: 4 Healthcare ETFs Poised for Explosive Growth Now

Core Viewpoint - The healthcare sector is gaining attention in 2026 as it begins to outperform the S&P 500, driven by a pullback in tech stocks and a shift towards defensive sectors [2][3]. Group 1: Market Performance - As of February 5, 2026, healthcare, utilities, and consumer staples are outperforming the S&P 500 year to date [2]. - The healthcare sector has lagged behind the S&P 500 in previous years but is now showing signs of recovery and potential leadership in the market [1][2]. Group 2: Investment Opportunities - The State Street Health Care Select Sector SPDR ETF (XLV) offers broad exposure to the healthcare sector, tracking the Health Care Select Sector Index and including pharmaceuticals (37%), equipment (20%), biotech (18%), and healthcare providers (16%) [4][5]. - The iShares U.S. Healthcare Providers ETF (IHF) focuses on healthcare providers and may be influenced by Medicare discussions, but elevated healthcare costs could benefit providers due to legislative gridlock [6][7].