Investing in Healthcare ETFs: A Guide for Canadian Investors
A look at healthcare's appeal as a defensive sector and three ETFs giving Canadian investors exposure to the global opportunity.
While market observers and participants have been captivated by SpaceX’s initial public offering (IPO) and the pending IPOs of Anthropic and OpenAI, in Canada, a recent IPO achieved great success: Apotex Health Corp (Ticker: APTX) (‘Apotex’). Apotex is a Canadian-based global health company with a portfolio of consumer health and wellness products. Its business lines include Conventional Generics, Specialty Generics, and Brand & Biosimilars.
Health Care: A Global Opportunity
While Health Care is a societally important industry, from an investment perspective, it is underrepresented in the Canadian equity landscape, as evidenced by its minuscule allocation within the MSCI Canada Index (factsheet as of May 29th); hence the significance of Apotex’s entry into public markets. In contrast, when looking at the MSCI USA or MSCI World ex-Canada Index, the sector is represented, signifying the global opportunity available to investors.
The investment opportunities in the Health Care sector are vast and diverse. While industries such as Pharmaceuticals and Biotechnology are well known, others, such as Health Care Distributors, may not be readily recognizable to the public. In looking at the performance of Health Care sub-industries within the U.S. equity landscape over the past 5 years, some have performed notably well.
Narrowing the time frame to approximately the last year and a half (i.e., January 2025 to June 19, 2026), against the backdrop of two events that shocked the market (i.e., Liberation Day and the Iran Conflict/Strait of Hormuz closure) and with investor (retail and institutional) capital flowing towards the AI ecosystem, three Health Care industries were able to outperform or provide returns comparable to the market.
Highlighting the performance of the underlying segments, particularly during downturns, is noteworthy, given that Health Care is considered a defensive sector. Industries such as pharmaceuticals, biotechnology, medical devices, and health insurance provide steady, inelastic demand for products regardless of economic conditions. Investors rely on these companies to provide a cushion during market downturns and geopolitical uncertainty.
The essential nature of Health Care will perpetually make it a focus for investors. Furthermore, developments such as a growing global aging population, the creation of drugs (e.g., GLP-1 medications) to treat and/or manage diseases such as diabetes, and the use of technology to improve surgical efficiency or to identify medical breakthroughs are examples of why Health Care presents a long-tailed, beneficial investment.
Investing in Health Care via ETFs
For Canadian investors interested in Health Care investing, there are several ETF offerings that allow for distinct or broad exposure to the industry.
For specific exposure to U.S. biotechnology equities, the First Trust NYSE Arca Biotechnology ETF (Ticker: FBT) provides exposure to an equal-dollar-weighted index designed to measure the performance of 30 leading biotechnology companies classified within the Biotechnology sub-industry group of the ICE Uniform Sector Classification schema.
For exposure to Health Care Leaders, the CI Global Healthcare Leaders Index ETF (Ticker: CHCL.B) seeks to replicate the Solactive Developed Markets Healthcare 150 CAD Index (CA NTR), which tracks the performance of the 150 largest companies in the global healthcare industry.
For investors seeking an actively managed solution, the BMO Global Health Care Fund Active ETF (Ticker: BGHC) provides exposure to global publicly traded health care companies with significant growth potential. The fund employs a fundamental, top-down, bottom-up process to screen for the most promising investment opportunities in the global health care sector and reflects the best ideas of experienced portfolio managers with extensive scientific and health care investment expertise.
This article was written on June 22nd, 2026. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
