Investing in health in 2026: opportunities and trends
Updated:
7 APR, 2026
By Joanna Piwko from RankiaPro Europe
In the occasion of World's Health Day (April 7th), we reflect on how to care for our health not just day-to-day, but also how to analyse it from the perspective of the financial sector.
ETFs and growth potential
In 2026, sector ETFs in healthcare and biotechnology are emerging from a multi-year reset with renewed growth potential, differing sharply between broad healthcare and high-beta biotech, and US versus European markets.
Global healthcare ETFs recorded their largest monthly inflows in five years in November 2025, attracting about $6.8 billion, a clear sign of renewed investor confidence in the sector’s defensive growth profile. Key European health ETFs like iShares MSCI Europe Health Care and Amundi STOXX Europe 600 Healthcare benefited steadily, representing a niche but resilient segment within ~10-15 major UCITS ETF health/biotech products. (...) Broad healthcare ETFs, such as global and US large-cap funds, continue to benefit from structural demand – aging populations, rising healthcare spending, and a need for defensive earnings – while still trading at reasonable valuations after lagging mega-cap tech for several years. Strong inflows and return in flagship funds suggest that – says Marlene Hassine Konqui, Associate Director General, BSD Investing.
Many broad healthcare ETFs remain anchored to large-cap pharmaceutical companies, legacy biotech and defensive healthcare services, diluting exposure to gene editing, AI-native platforms and data rich diagnostics. We believe many portfolios will participate in health care’s revenue, but far fewer will participate in healthcare's reinvention. That distinction will matter as biology becomes a data science – adds Rahul Bhushan, Global Head of Index, ARK Invest Europe, adds.
Healthcare continues to stand out as a key allocation within diversified portfolios, offering a combination of defensive resilience, innovation-led growth, and increasingly positive investor sentiment.
According to the Trackinsight database, there are currently 97 healthcare ETFs and 52 biotech ETFs available to investors. Beyond broad sector exposure, the market also offers highly specialised strategies targeting segments such as medical equipment, orphan drugs, next-generation treatments, and medical breakthroughs, enabling more granular portfolio positioning. – observes Inès Barahhou, Advisory and Quantitative Solutions, Kepler Cheuvreux.
Pharmaceuticals lead the way
While broad healthcare ETFs capture the sector’s overall growth, investors are increasingly looking at which subsectors offer the most attractive risk-reward profiles. Within healthcare, pharmaceuticals stand out as a particularly resilient and profitable segment, benefiting from diversified pipelines, innovation, and steady demand for essential medicines. Life sciences tools and services also show strong potential, supported by structural increases in R&D spending and growing outsourcing by large pharmaceutical companies.
From a subsector perspective, pharmaceuticals remain the preferred segment, particularly companies with diversified portfolios and robust pipelines that can offset patent expirations and sustain organic growth. Life sciences tools and services also present an attractive profile, benefiting from the structural increase in R&D spending and the growing outsourcing of processes by large pharmaceutical companies. – says Mariano Arenillas, Head of DWS Iberia
Healthcare as a path beyond big tech returns
Major US tech giants are under pressure, partly due to concerns over heavy short-term investments and high valuations. This is prompting investors to explore other sectors with strong growth potential enter healthcare.
Not only healthcare, but wellness is becoming increasingly attractive. The whole value chain has opportunities like companies being active in prevention and diagnostics. Pharma ceuticals of important drugs like for weight reduction, cancer and Alzheimer. Healthy food with more proteins, less sugar and salt. Sport and active wear including technical gadgets do benefit from this trend. But also, relaxation is important for some that is with streaming services like Netflix, Disney, or Amazon Prime. – indicates Rishma Moennasing, Lead Investment Funds & Mandates, Robobank
Beyond traditional healthcare, investors are increasingly looking at the broader wellness ecosystem as a growth opportunity. Companies focused on preventive care, digital health platforms, nutritional innovation, and mental wellbeing are capturing attention. Wearables, fitness apps, and telemedicine services are bridging the gap between daily habits and long-term health outcomes, while personalised nutrition and lifestyle solutions offer scalable business models that resonate with a health-conscious population. This shift from reactive treatment to proactive wellbeing is creating multiple entry points for investors seeking both defensive stability and high-growth potential.
Rapidly falling genome sequencing costs and AI-enabled biology are accelerating drug discovery, diagnostics, and personalized treatment pathways. What remains less clear is how these forces will ultimately play out. In listed markets, this may favor active selection across small- and mid-cap companies with late-stage clinical assets in underexplored therapeutic areas, as well as large-cap players investing in next-generation therapies such as gene editing and cell therapy. In private markets, early-stage biotech and digital health startups with scalable platforms and strong user engagement metrics may offer attractive upside, in our view. – says Filipe Alves, Senior Investments Consultant, Mercer
To learn more about opportunities in healthcare system, check out the March issue of RankiaPro Europe Magazine.
This article is for informational purposes only and does not constitute financial advice.
