Core Insights - The 2026 BBH Global ETF Investor Survey indicates a robust global demand for ETFs, with a notable shift towards active management and thematic ETFs [1] - Nearly all surveyed investors (96%) plan to increase their ETF exposure over the next 12 months, consistent with previous findings from February 2025 [1] Active Management Trends - In 2025, approximately 1,000 new active ETFs were launched, with 98% of professional investors intending to expand their exposure to actively managed ETFs in the coming year [1] - A majority of ETF investors (66%) believe that active management will be the most attractive investment approach over the next 12 months, compared to 34% favoring passive management [1] - Most investors (94%) anticipate that active ETFs will reach $10 trillion in assets within the next decade, with 77% expecting this milestone within seven years [1] Thematic Investing Growth - There is a significant interest in thematic investing, with 36% of surveyed investors looking to increase their exposure, marking a 17% increase from 2025 [1] - Specific strategies gaining traction include dividend/income ETFs (33%) and defined outcome ETFs (26%) [1] - Thematic ETFs linked to VettaFi indexes are highlighted as opportunities for investors seeking targeted exposure beyond broad market indices [1] ETF Market Preferences - The survey underscores a clear trend where investors are moving towards active management and high-conviction thematic strategies, moving away from broad market exposure [1] - The BBH report provides extensive data on various aspects of the ETF market, including regional allocation nuances and the maturation of fixed income ETFs [1] - The ETF wrapper remains the preferred investment vehicle for both institutional and retail investors navigating a complex macro environment [1]

Core Insights - The healthcare sector has underperformed in the S&P 500, with gains of about 10% in 2025 compared to a flat performance in healthcare [1] - Healthcare stocks are currently trading at a 10% discount to their fair value, marking one of the cheapest valuations in over five years [1][3] - Health tech is highlighted as a promising segment within healthcare, showing strong fundamentals and potential for capital growth [2][6] Healthcare Sector Performance - The healthcare sector is characterized by volatility and complexity, with both opportunities and risks tied to innovation [1] - The Health Care Select Sector SPDR Fund (XLV) has only increased by 3% since April, indicating underperformance relative to the broader market [2] Health Tech Segment - Health tech companies are capital and R&D intensive, focusing on disrupting traditional healthcare practices [2] - The ROBO Global Healthcare Technology and Innovation ETF (HTEC) has gained nearly 25% since April, outperforming the broader healthcare sector [2] - HTEC is currently trading at the bottom of its historic EV/sales ratio, suggesting a potential for correction and growth [3] Innovation and M&A Activity - Accelerating innovation in areas like genomics and robotics is driving growth in health tech [3][4] - AI-driven drug discovery is expected to significantly impact the sector, with an estimated $236 billion in revenues at risk due to expiring patents by 2030 [4] Valuation and Market Conditions - The healthcare sector is viewed as undervalued, presenting opportunities for investors seeking capital growth [6] - Macroeconomic pressures such as high-interest rates and inflation are easing, while demand for healthcare remains strong [6]