Global technology shares have suffered due to AI integration and replacement fears.

Meanwhile, healthcare has also lagged, potentially due to investors shifting into sectors with clearer near-term growth catalysts.

However, this recent weakness may now mean these sectors trade at a valuation discount to the broader market. 

If you are optimistic on the long-term growth of technology or healthcare shares, here are some ASX ETFs to consider. 

Betashares S&P ASX Australian Technology ETF (ASX: ATEC)

Technology shares are largely underrepresented in Australia compared to dominant sectors like big banks and miners.

Many Australian tech companies have endured heavy sell-offs due to fears that AI could cut into core products. 

This has led to many positive ratings from brokers, suggesting these companies have now been oversold.

The Betashares ATEC fund combines many of these Aussie tech companies into one ASX ETF. 

It provides exposure to approximately 47 leading ASX-listed companies across a range of tech-related market segments, including information technology, consumer electronics, online retail, and medical technology.

It is down 20% year to date. 

Global X Morningstar Global Technology ETF (ASX: TECH)

For a more global exposure to technology shares, this fund offers exposure to companies based in the United States, Europe, and Asia. 

It targets companies positioned to benefit from increased technology adoption, including those whose principal business is offering Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

The fund has fallen almost 17% year to date. 

BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)

Global healthcare shares have also had a soft start to 2026. 

For investors looking to target a defensive sector, this ASX ETF provides exposure to the largest global healthcare companies (ex-Australia), hedged into Australian dollars.

At the time of writing, it comprises 60 underlying holdings, which could benefit in the long term due to ageing populations, rising living standards, and ongoing medical advancements. 

These are expected to support increasing ongoing demand for healthcare products and services.

The fund is down 2.5% since the start of the year. 

iShares Global Healthcare ETF (ASX: IXJ)

This fund aims to provide investors with the performance of the S&P Global 1200 Healthcare Sector Index. 

It offers a more diversified option for global healthcare stocks.

This index is designed to measure the performance of global biotechnology, healthcare, medical equipment, and pharmaceutical companies and may include large, mid, or small-capitalisation stocks.

The fund has fallen more than 7% so far in 2026. 

The post ASX ETFs that target undervalued sectors appeared first on The Motley Fool Australia.

It makes up roughly 6% of the S&P/ASX 200 Index (ASX: XJO). 

By comparison, financials and materials make up more than 56%. 

This means that for investors wanting exposure to healthcare shares, looking at an international ETF can be a good option. 

A report from iShares suggests the long-term outlook is positive with policy headwinds easing.

Here are three reasons why now might be a good time to gain exposure to global healthcare shares. 

Policy headwinds easing

According to iShares, US policy uncertainty saw valuations in healthcare suppressed at near 30-year lows in 2025.

However, the policy uncertainty that hung over the sector last year has now largely resolved. 

President Trump's Most Favored Nation executive order has spurred major drug companies to negotiate deals on medication pricing, and investor focus is swinging back to the sector's strong innovation pipeline. 

This sparked outperformance in the last quarter of 2025. 

Healthcare led all global sectors in Q4 – gaining more than 10% after President Trump's Most Favored Nation executive order prompted pharmaceutical giants such as Pfizer and Eli Lilly to negotiate pricing with the White House and helped to resolve uncertainty over US tariff policies.

Heavy investment

In the report from iShares, it said clear policy direction, alongside investor concerns regarding a possible technology sector bubble in the United States, prompted significant movement into healthcare investments toward the end of last year. 

In November 2025, ETFs targeting this sector experienced their largest monthly global inflows in five years, attracting US$6.8 billion across the industry. 

With clarity now emerging for what has recently been an unloved sector, we see an opportunity for investors to refocus on the positive fundamentals and long-term supportive trends that may propel healthcare forward in 2026.

Despite gaining momentum, iShares believes the sector is still undervalued.

With healthcare valuations still looking cheap relative to global equities – trading at around a 13% discount despite the recent performance surge – now may be the time for investors to consider adding more exposure to the sector.

AI buildout and defensive safety

While some sectors are being threatened by AI takeover, healthcare shares are being positively impacted by AI.

Industry experts said AI is now increasingly being used in hospitals to automate clinical notes, staffing rosters and billing, freeing up staff for more valuable tasks, and patient care. 

Additionally, AI is beginning to transform the medical research field, accelerating drug development from early studies to human trials and market launch.

The report also reinforced that, as well as offering opportunities to tap into innovation and some of the long-term 'mega forces' shaping the global economy today, healthcare exposure can provide additional benefits for those looking to build a diversified share portfolio.

How do investors gain exposure to global healthcare?

For investors looking to add this sector to their portfolio, here are three ASX ETFs to consider. 

The first is the iShares Global Healthcare ETF (ASX: IXJ). It tracks the performance of the S&P Global 1200 Healthcare Sector Index. This index includes small, mid, and large-cap biotechnology, healthcare, medical equipment, and pharmaceuticals companies.

Another option is the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG). 

It is made up of 60 of the largest global healthcare companies (outside of Australia). 

Finally, Vaneck Vectors Global Health Leaders ETF (ASX: HLTH) invests in 50 fundamentally sound and attractively valued companies with the best growth prospects in the healthcare sector.

The post 3 reasons to target global healthcare in 2026 -expert appeared first on The Motley Fool Australia.

The report said healthcare stocks have lagged over this period, mostly due to potential US policy effects on the growth rates for biopharma, healthcare plans, and medical technology firms.

The tide is turning

According to VanEck, over the past two years, healthcare stocks underperformed relative to the broader market. 

This is despite catalysts such as innovation and progress in weight-loss drugs.

However, the ASX ETF provider said the tide could now be turning. 

Recently, there has been some clarity on healthcare policies, increased M&A activity, as well as interest from investors who are rotating back into defensive growth and quality earnings due to the volatile macro environment.

Additionally, recent earnings season results from Q3 in the US shows over 80% of reported healthcare companies have "surprised to the upside", and price reactions post earnings have also been positive. 

Looking ahead, the long-term structural growth drivers, including ageing populations, chronic disease management, med-tech adoption, and digital health, remain present.

Emerging tailwinds 

VanEck pointed towards changing policy in the US as one emerging factor set to benefit the sector. 

It said there has been renewed clarity on US drug pricing policy following the Pfizer–Trump administration agreement. 

The agreement included exchanging Medicaid cost cuts for tariff relief. 

The ETF provider said this has lowered market fears of sweeping "most-favoured-nation" (MFN) mandates that would have pressured pricing across the sector. 

Pfizer, Merck, and Johnson & Johnson all experienced price rises after the announcement due to improved sentiment toward the sector.

VanEck believes the sector is now trading at a relative value to the broader market. 

With macro uncertainty at the forefront of investors' minds, many are rotating toward defensive growth, benefiting healthcare broadly and many investors are targeting those companies with quality characteristics and/or wide moats.

How to target global healthcare stocks

Healthcare stocks are relatively underexposed on the ASX compared to sectors like financial (Big four banks) and materials (mining giants). 

This means Aussie investors are often looking overseas to tap into healthcare markets.

The team at VanEck believes long-term structural trends supporting the sector could make it an ideal time to gain exposure to international healthcare stocks, including: 

• The combination of global population growth and ageing demographics.
• Increasing prevalence of chronic diseases, which will continue to drive up the demand for healthcare.
• Increasing expenditures in emerging economies that need to close the gap to match the levels of spending in developed economies, as their growing and increasingly wealthy populations will demand it.

For investors looking for diversification into global healthcare stocks, there are several ASX ETFs offering focussed exposure to this sector. 

Investors may consider: 

• Vaneck Vectors Global Health Leaders ETF (ASX: HLTH) – Gives investors exposure to a diversified portfolio of the largest international companies from the global healthcare sector.
• iShares Global Healthcare ETF (ASX: IXJ) – Made up of more than 100 global equities in the healthcare sector.
• BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) – Aims to track the performance of the largest global healthcare companies (excluding Australia). 

Another option for investors looking for overweight to the sector, with a broader fund, could consider Vaneck Vectors Morningstar World Ex Australia Wide Moat ETF (ASX: GOAT).

It has a 25.7% allocation to the healthcare sector within a portfolio of attractively priced international 'wide moat' companies with sustainable competitive advantages.

The post Is there a turnaround coming for healthcare stocks? appeared first on The Motley Fool Australia.

Many investors use these funds to gain exposure to international markets like the S&P 500 Index (SP: .INX) or NASDAQ-100 Index (NASDAQ: NDX).

However when you choose funds that track these markets, you might be faced with the decision of hedged or unhedged funds. 

That's because these funds are tracking companies based in other countries. 

What is currency hedging?

Currency-hedged ETFs are exchange-traded funds that are designed to reduce (or eliminate) the impact of exchange rate fluctuations on investment returns when investing in foreign assets.

When you invest in international stocks or bonds, you're exposed not just to the performance of those assets, but also to changes in the foreign currency against your home currency.

This year, the Australian dollar has been volatile compared to the USD. The value of $1 AUD fell as low as 60 US cents in April, and has slowly climbed back to around 65 US cents at the time of writing. 

Let's look at how this has impacted ETFs that track the S&P 500 Index (SP: .INX). 

Impact on non-hedged ASX ETFs 

If you own a non-hedged ASX ETF that tracks a US index like iShares S&P 500 ETF (ASX: IVV), your returns are affected by:

• The performance of the S&P 500 (in USD)
• The AUD/USD exchange rate

When AUD is weak like it was in April (around 60¢), each USD of S&P 500 return converts into more AUD. This means your returns in AUD increase and you benefit from currency depreciation. 

However, when the AUD strengthens, each USD is worth fewer AUD. This means your AUD returns fall, even if the S&P 500 rises in USD. 

Hedged ETFs 

Now lets look at a hedged fund, like iShares S&P 500 AUD Hedged ETF (ASX: IHVV).

This ETF hedges currency exposure using derivatives, aiming to keep returns in AUD terms only reflecting the S&P 500.

Whether the AUD goes up or down doesn't materially affect returns.

You're only exposed to the S&P 500's actual performance, not currency fluctuations.

Are hedged ASX ETFs better?

Unfortunately, it's not as simple as which option is better or worse. It largely depends on your risk appetite and personal preference. 

Over the long term, currency fluctuations will likely balance out. 

However, some investors may prefer to avoid these rises and falls, particularly if you invest in funds that are exposed to more volatile economies. 

What are some common hedged funds?

If you are looking to invest in currency hedged ETFs, here are some to consider: 

• Betashares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ)
• Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)
• Betashares Global Quality Leaders ETF – Currency Hedged (ASX: HQLT)
  

Some more thematic options include: 

• BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)
• Vaneck Msci International Small Companies Quality (Aud Hedged) Etf (ASX: QHSM)

The post Is it a good time to focus on currency hedged ASX ETFs? appeared first on The Motley Fool Australia.

Recent trends have seen big returns in sectors like tech and financials. 

If you were exposed to these sectors before the last couple of years, you would likely be sitting pretty today. 

One important piece of data I am aware of, is Australia's ageing population. 

Looking ahead

Data from the Australian Bureau of statistics shows in 2020, there were an estimated 4.2 million older Australians (aged 65 and over) – comprising 16% of the total Australian population. 

In the next 30 years, this number is projected to increase to more than 20%. 

Essentially, one in five Australians will be over the age of 65. 

Why is that the case?

Firstly, advances in healthcare, medical technology, and living standards mean Australians are living longer. 

Secondly, the baby boomer generation (born between 1946 and 1964) is progressively reaching retirement age.

As this large demographic group moves into the 65+ age bracket, it significantly increases the overall percentage of older Australians.

What does this mean for investors?

When we project this data for the long term, it makes me aware of the enormous demand for several key sectors in the decades ahead. 

One key area that is set to benefit is the healthcare sector. As we age, the demand for healthcare services increases. 

Some key ASX listed stocks that could be set to benefit include: 

• CSL Ltd (CSL): Global leader in blood plasma, vaccines, and biotherapies.
• Cochlear Ltd (COH): Implants for hearing loss, common in older adults.
• ResMed Inc (ASX: RMD): Sleep apnea devices, increasingly used by ageing populations.
• Ramsay Health Care Ltd (ASX: RHC): Operates private hospitals across Australia and globally.
• Healius Ltd (ASX: HLS) and Sonic Healthcare Ltd (ASX: SHL) Pathology and diagnostic services.

Other key companies to monitor are those in the pharmaceuticals & biotechnology space, aged care & retirement living and wealth management. 

These areas all play an important role in caring for older Australians.

Which ASX ETFs give exposure to these sectors?

While these individual stocks may have plenty of upside, there are thematic ASX ETFs that combine hundreds of these options into one fund. 

An ageing population is not a unique problem only here in Australia.

In fact, the World Health Organisation recently revealed life expectancy at birth reached 73.3 years in 2024, an increase of 8.4 years since 1995.

The number of people aged 60 and older worldwide is projected to increase from 1.1 billion in 2023 to 1.4 billion by 2030.

Global X S&P Biotech ETF (ASX: CURE)

This fund seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology.

It is made up of roughly 124 holdings, with no individual company representing more than 3.3% of the fund.

iShares Global Healthcare ETF (ASX: IXJ)

The index is designed to measure the performance of global biotechnology, healthcare, medical equipment and pharmaceuticals companies and may include large, mid or small-capitalisation stocks.

Its largest holdings include Eli Lilly, Johnson and Johnson and ABBVIE Inc.

It also includes a small exposure to Australian companies in this sector. 

BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)

DRUG WTF aims to track the performance of an index (before fees and expenses) that comprises the largest global healthcare companies (ex-Australia), hedged into Australian dollars. 

At the time of writing it provides access to 59 of the world's leading healthcare companies, such as Johnson & Johnson, Pfizer and Roche, in one trade.

The post The long game: ASX ETFs to target amidst an ageing population appeared first on The Motley Fool Australia.

It has risen 23.91% already in 2025, however broker Macquarie has raised some red flags for its future. 

For context, S&P/ASX 200 Health Care Index (ASX:XHJ) is down more than 7% over that same period. 

At the time of writing shares are trading at $6.84 each, however the broker has issued an "underperform" rating and 12 month price target of $5.55. 

Why is Macquarie pessimistic about the future of NIB Holdings?

According to a report issued on Tuesday, 

The Department of Employment and Workplace Relations (DEWR) has issued a "Request for Information" for the Pacific Australia Labour Mobility (PALM) scheme. Since FY21, NHF has been the preferred (not exclusive) partner, with ~97% customer conversion.

So what does this mean?

The Australian government is reviewing who provides health insurance for workers in its Pacific Australia Labour Mobility (PALM) scheme.

NIB is the main provider right now, but the government recently sent out a Request for Information (RFI) to explore other options. This could mean competition is coming or changes to the contract.

According to Macquarie, the RFI includes several questions that indicate NHF could face challenges retaining the contract.

We estimate PALM accounts for ~30% of customers in NHF's Workers portfolio, which in turn represent ~50% of customers in their IIHI division.

With multiple sub-divisions now experiencing operational headwinds, we retain our cautious outlook.

In summary, PALM customers currently account for 30% of NIB's Workers insurance.

Workers insurance accounts for 50% of NIB's international business.

If NIB loses this deal or it changes significantly, NIB's profits could take a hit.

What are other brokers saying?

NIB Holdings could be considered an example of a defensive stock. This is because demand for health insurance  products and services remains high even during an economic downturn when consumers reduce their overall spending.

This could be one reason it has fared well to start the year amidst uncertain global economic conditions. 

Despite Macquarie's cautious outlook, other brokers seem neutral on the stock price of NIB Holdings. 

Bell Potter currently has a target price of $7.00, suggesting the share price is close to fair value. 

Similarly, online brokerage platform SelfWealth lists the share price of the ASX200 stock as "near fair value" with an average price target of $7.03.

If the idea of a defensive stock is appealing for investors, here are three defensive ETFs that could be worth considering:

• BetaShares Global Healthcare ETF (ASX: DRUG)
• Vanguard Australian Government Bond Index ETF (ASX: VGB)
• VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The post Which ASX200 health insurance stock does Macquarie tip to underperform? appeared first on The Motley Fool Australia.

The past month or so has proved to be a rather brutal reminder that the stock markets don't always go up and to the right. After a very pleasant experience over 2023 and 2024, it's possible that many ASX investors might have forgotten that fact. But it will no doubt be front of mind this March, given that the S&P/ASX 200 Index (ASX: XJO) has lost around 8% over the past four weeks of trading in one of the most volatile periods ASX investors have seen in years.

Owning a market-tracking index fund may suit some investors. But it is always going to be just as volatile as the index it tracks, which might not make it a suitable option for the more conservative or nervous investors out there.

So today, let's discuss three defensive ASX ETFs that investors can buy today to hedge their portfolios against volatility.

Three defensive ASX ETFs to navigate through market volatility

First, we have the BetaShares Global Healthcare ETF (ASX: DRUG). Healthcare stocks are typically some of the more defensive businesses on the market. This makes sense, as the revenues and profits that healthcare companies bring in are not usually affected by the economy. A significant portion of overall spending on global healthcare is funded by the government, further adding to this sector's defensiveness.

DRUG is an ASX ETF that invests in some of the world's largest healthcare stocks, including AstraZeneca, Johnson & Johnson, and Eli Lilly.

This defensive ASX ETF has returned 8.09% per annum since its inception in 2016 and charges an annual management fee of 0.57%.

Next, we have a defensive ASX ETF from provider Vanguard to discuss. The Vanguard Australian Government Bond Index ETF (ASX: VGB) doesn't invest in shares at all. Instead, as its name implies, it holds a range of fixed-interest assets, or bonds, issued by Australian governments and government-owned businesses.

Bonds, particularly those issued by governments, are often favoured by investors looking for conservative, income-producing assets that don't lose value in market crashes. Bonds don't tend to offer the kinds of returns that quality shares do. But if you want to add some defensive qualities to your portfolio, this ETF is another compelling option. VGB has returned an average of 2.59% per annum since its inception in 2012. This defensive ETF charges a management fee of 0.16% per annum.

A Buffett fund?

Finally, we get to the VanEck Morningstar Wide Moat ETF (ASX: MOAT). With this defensive ETF, we're back to stocks. MOAT holds a portfolio of Ameircan-listed companies that are all selected on their perceived possession of an economic 'moat'.

A moat is the term used by Warren Buffett to describe a company's intrinsic competitive advantage, which it can use to ward off competition and protect its profits. This advantage could be a strong brand (perhaps Apple or Coca-Cola), a network effect that nudges non-users into the fold (Facebook), or the ability to offer goods at the cheapest price on the market (Amazon or Costco).

Whilst MOAT's holdings are still stocks subject to the whims of the market, they tend to be strong, mature businesses that are resistant to economic shocks. That arguably makes this fund a defensive ETF.

This ETF's methodology has worked well, with an average return of 15.71% per annum since MOAT's 2015 ASX inception. It asks a fee of 0.49% per annum.

The post 3 defensive ETFs to navigate volatility on the ASX appeared first on The Motley Fool Australia.

For many people, weight loss is far more than a cosmetic goal—it can feel like a deeply personal and ongoing challenge tied to confidence, health, and overall quality of life.

When the struggle has lasted for years, it's understandable that some individuals are willing to explore every possible avenue, from prescription medications to structured meal planning and lifestyle changes.

In the middle of that journey, the guidance of JM Nutrition can play an important role, as working with a qualified dietitian often brings a more balanced, long-term perspective that goes beyond quick fixes.

In some cases, dietitians may even support a broader medical strategy by discussing whether physician-prescribed weight loss medications could complement nutritional counselling, helping people pursue safer and more sustainable results.

Drugs like Ozempic have taken the world by storm and resulted in massive profits for drug stock makers like Novo Nordisk. As such, it's only natural for ASX investors to want a slice of the action.

And some significant action there is. According to exchange-traded fund (ETF) provider BetaShares, investment bank Morgan Stanley estimates that the global market for obesity drugs like Ozempic could reach US$77 billion by 2030.

However, the ASX is not exactly known for its pharmaceutical stocks. Sure, we have a few respectable names on our ASX boards. But the real global titans in this space – think the likes of Novo Nordisk, Eli Lilley, Pfizer and Johnson & Johnson – are all international stocks with either primary or secondary listings on the US markets.

Australian investors can always buy these shares directly from the US markets if they want exposure to these companies. But many ASX investors aren't comfortable with this option.

Luckily, there's an easy, ASX-based alternative – investing in ASX ETFs.

The ASX is home to hundreds of different exchange-traded funds. A few of these specialise in global healthcare and pharmaceutical companies and would make for an easy way for ASX investors to get a slice of the action.

How to use ASX ETFs to buy US weight loss drug stocks

One such fund is from BetaShares itself – the BetaShares Global Healthcare ETF (ASX: DRUG). This ETF invests in a portfolio of the world's leading healthcare companies, hedged into Australian dollars to take out the impacts of foreign exchange movements.

DRUG holds around 60 different pharmaceutical and healthcare stocks, mostly listed on the US markets. If you buy DRUG units, you're top two holdings in the underlying portfolio will be none other than Eli Lilley and Novo Nordisk. Eli Lilley currently makes up 8.5% of DRUG's weighted portfolio, with Novo Nordisk coming in at 7.1%.

As such, this is a very simple choice for any ASX investors seeking access to these stocks.

But DRUG isn't the only choice for ASX investors looking for weight loss drug exposure. There's also the iShares Global Healthcare ETF (ASX: IXJ).

This ETF operates similarly to DRUG in offering a portfolio of the largest global healthcare and pharmaceutical stocks to ASX investors.

IXJ also currently has Eli Lilley and Novo Nordisk as its largest holdings, with portfolio weightings of 9.31% and 5.95%, respectively.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) is another option to consider. It has a slightly different composition, with stocks like Tenet Healthcare and United Therapeutics Corp occupying the top spots. However, Eli Lilley and Novo Nordisk are still there, with portfolio weighting of 2.51% and 2.46%, respectively.

Being sector-specific ETFs, these funds aren't the cheapest on the ASX. DRUG charges an annual management fee of 0.57%, for example. IXJ asks 0.41% per annum, while HLTH will set you back 0.45% per annum.

But that's the price you'll have to pay if you want easy ASX access to US weight loss drugs and their manufacturers on the Australian stock market.

The post How to invest in US weight loss drug stocks on the ASX appeared first on The Motley Fool Australia.

As such, this drug's potential benefits have already had a big impact on the ASX, with companies that potentially compete with its applications, such as ResMed Inc (ASX: RMD) and CSL Limited (ASX: CSL), recently being sold off.

As such, many ASX investors might be hoping to invest in Ozempic. Or more specifically, in Novo Nordisk A/S (CPH: NOVO-B)(NYSE: NVO) shares. Novo Nordisk is the pharmaceutical company that produces Ozempic.

But there's a problem for ASX investors. Novo Nordisk shares are nowhere to be found on the ASX.

The company is Danish in origin. So it will come as no surprise to hear that Novo Nordisk's primary public listing is on the Nasdaq Copenhagen Stock Exchange. Most ASX investors don't even have access to this stock market, with only a handful of select brokerage firms offering access.

However, Novo Nordisk does have a secondary listing on the US markets. Specifically on the New York Stock Exchange (NYSE). So ASX investors with the desire and access to invest in US shares can buy Novo Nordisk stock under the ticker code 'NYSE: NVO' if they so wish.

Want to buy this popular US stock? Try an ASX healthcare ETF

But there is another way to invest in this exciting opportunity on the ASX. It's by using exchange-traded funds (ETFs). Now since Novo Nordisk shares can be found on the NYSE, one would be forgiven for assuming that a simple US index fund might do the job.

But sadly, Novo Nordisk shares aren't a constituent of either the iShares S&P 500 ETF (ASX: IVV) or the BetaShares NASDAQ 100 ETF (ASX: NDQ). Those are two of the most popular US index funds listed on the ASX, but neither holds this company.

But don't despair. There are still ASX ETFs that will allow one to indirectly invest in the Ozempic producer. ASX healthcare ETFs, to be precise.

As we covered back in September, the VanEck Global Healthcare Leaders ETF (ASX: HLTH) is one such fund. Holding 51 healthcare stocks from around the world, this ETF is designed to allow ASX investors access to a range of healthcare companies that aren't listed in Australia. As of 1 November, Novo Nordisk was one such company, commanding a portfolio weighting in HLTH's portfolio of 2.17%.

The BetaShares Global Healthcare ETF (ASX: DRUG) is another similar fund with 69 underlying holdings. However, Novo Nordisk's holdings within DRUG are more than double that of HLTH, with a weighting here of 5.7%.

Finally, let's talk about the iShares Global Healthcare ETF (ASX: IXJ). This fund operates on a larger scale than those other two healthcare ETFs, with approximately 115 holdings. Despite this, IXJ still offers ASX investors a 4.78% weighted exposure to the Ozempic maker's shares in the portfolio.

So if you're desperate to invest in Ozempic through its maker Novo Nordisk, there are certainly a few options on the ASX to consider today. Even if you don't wish to buy the US or Danish-listed shares directly.

The post How can ASX investors buy the US stock the WHOLE world is talking about? appeared first on The Motley Fool Australia.

With analysts forecasting huge growth in demand for drugs like Ozempic over the next decade, there are concerns that ResMed could lose some of its sleep apnoea customer base. That's because research shows that 70% of obstructive sleep apnoea (OSA) patients are obese.

The good news is that most analysts believe this is an overreaction and that there's still a huge market for ResMed to grow into outside any Ozempic impacts.

But what about Ozempic and other obesity drugs? Should we be investing in them as well?

The team at Morgan Stanley believes it could be a good idea based on its expectations for explosive growth through to 2030.

Morgan Stanley's European Biopharmaceuticals analyst, Mark Purcell, commented:

Social media activity documenting transformative weight loss, together with the establishment of affordable insurance coverage more quickly than anticipated, has helped drive demand for obesity medicines beyond our expectations. While supply constraints have capped sales growth in the near term, the global obesity market could go from a $2.4 billion category in 2022 to reach $77 billion in 2030, up from our previous estimate for a $54 billion.

ASX ETFs to the rescue

The simplest way to invest in Ozempic and other obesity drugs is to go directly to the source.

In the case of Ozempic, this would mean investing in Danish pharmaceutical giant Novo Nordisk (NYSE: NVO), which is listed on Wall Street.

As for Mounjaro, a diabetes treatment being repurposed as an obesity drug, it is owned by US pharmaceutical behemoth Eli Lilly And Co (NYSE: LLY).

However, if you're not keen on going down this route, then you could look at ASX ETFs.

The VanEck Global Healthcare Leaders ETF (ASX: HLTH) gives investors access to 50 of the largest international companies from the global healthcare sector. Its holdings include both Eli Lilly & Co and Novo Nordisk.

Alternatively, the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) could be another way to do it. It is invested in a touch under 70 global healthcare shares, with Eli Lilly & Co and Novo Nordisk making up a total weighting of 12.9% of the portfolio.

The post 'Beyond our expectations': How to invest in obesity drugs like Ozempic with ASX ETFs appeared first on The Motley Fool Australia.

Three exchange-traded funds (ETFs) that could help you achieve this goal are listed below. Here's why they could be worth considering in the current uncertain economic environment:

Global Healthcare ETF – Currency Hedged (ASX: DRUG)

The first ASX ETF to look at is the Global Healthcare ETF. This ETF provides investors with easy access to the largest global healthcare companies, hedged into Australian dollars. Given how healthcare companies can typically pass rising costs on to consumers, this provides investors with some level of inflation protection. It is for this reason that Betashares' chief economist, David Bassanese, recently suggested it would be a good option in the current environment. Among its holdings are healthcare giants such as Astra Zeneca, Johnson & Johnson, Merck & Co, and Pfizer.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that could be worth considering according to Bassanesse is the Betashares Global Quality Leaders ETF. It offers investors access to a portfolio of approximately 150 high-quality companies outside Australia. To be included in the fund, a company needs to rank highly with four key metrics. These are return on equity, debt-to-capital, cash flow generation ability, and earnings stability. The ETF includes companies such as Alphabet, L'Oreal, Microsoft, Nvidia, and Visa.

iShares Global Consumer Staples ETF (ASX: IXI)

A final defensive ASX ETF to look at is the iShares Global Consumer Staples ETF. This ETF gives investors exposure to the world's largest global consumer staples companies. This includes giants such as Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart. As the products these companies manufacture and/or sell are always in demand whatever is happening in the economy, they appear well-placed in the current economic environment.

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If you are, then it could be worth checking out the two listed below that are highly rated by Betashares' chief economist, David Bassanese.

Here's what the chief economist is saying about these ASX ETFs:

Global Healthcare ETF – Currency Hedged (ASX: DRUG)

The first ASX ETF that could be a buy is the Global Healthcare ETF.

This ETF gives investors easy access to the largest global healthcare companies, hedged into Australian dollars.

Bassanese notes that the companies included in the fund, which are are predominantly pharmaceutical companies, have defensive qualities and can typically pass rising costs on to consumers. This provides investors with some level of inflation protection.

Among its holdings are healthcare stocks including Astra Zeneca, Johnson & Johnson, Merck & Co, and Pfizer.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF for investors to look at is the Betashares Global Quality Leaders ETF.

This ETF offers investors exposure to a portfolio of approximately 150 high-quality global companies (excluding Australia).

The fund has strict entry requirements for its holdings. For example, to be included in the ETF, a company needs to rank highly on four key metrics. These are return on equity, debt-to-capital, cash flow generation ability, and earnings stability.

These are all qualities that are attractive in any market, but particularly in the current uncertain economic environment. This helps explain why the Betashares Global Quality Leaders ETF has risen approximately 12% since the start of the year. This is more than triple the 3.3% gain recorded by the ASX 200 index over the same period.

The ETF currently includes companies such as Alphabet, L'Oreal, Microsoft, Nvidia, and Visa.

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These ETFs have recently been recommended by Betashares' chief economist, David Bassanese, as great options in the current uncertain economic environment. They are as follows:

Global Healthcare ETF – Currency Hedged (ASX: DRUG)

The first ETF that has been tipped as a buy is the Global Healthcare ETF.

This ETF provides investors with easy access to the largest global healthcare companies, hedged into Australian dollars.

Bassanese highlights that the largest global healthcare companies are predominantly pharmaceutical companies, which are often considered defensive. Especially considering how they can typically pass rising costs on to consumers. This provides investors with some level of inflation protection.

Among its holdings are healthcare giants such as Astra Zeneca, Johnson & Johnson, Merck & Co, and Pfizer.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ETF to look at is the Betashares Global Quality Leaders ETF. It offers investors exposure to a portfolio of approximately 150 global companies (excluding Australia).

To be included in the ETF, a company needs to rank highly on four key metrics. These are return on equity, debt-to-capital, cash flow generation ability, and earnings stability. The ETF includes companies such as Alphabet, L'Oreal, Microsoft, Nvidia, and Visa.

Alternatively, there's an option you can consider if you would prefer to invest in high-quality ASX shares instead. Bassanesse has suggested investors look at the Betashares Australian Quality ETF (ASX: AQLT). It is currently home to 40 high-quality ASX shares, which includes companies such as biotherapeutics behemoth CSL Limited (ASX: CSL) and telco giant Telstra Group Ltd (ASX: TLS).

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Over at exchange traded fund (ETF) provider Betashares, its chief economist, David Bassanese, believes there's a 50% chance that the global economy will fall into a recession. He commented:

Our most likely scenario is that the lagged impact of policy tightening over the past year, along with further modest tightening in the first half of 2023, soon leads to a notable slowing in global economic growth, such that the US in particular descends into outright recession,

In light of this, Bassanese has suggested that investors take a look at defensive options that could fare better in this environment. Here's what you need to know:

Global Healthcare ETF – Currency Hedged (ASX: DRUG)

The first ETF to look at is this global healthcare ETF. It provides investors with exposure to the largest global healthcare companies, hedged into Australian dollars. Bassanese notes that the largest global healthcare companies are predominantly pharmaceutical companies, which are often considered "defensive" by nature and can typically pass rising costs on to consumers.

Betashares Australian Quality ETF (ASX: AQLT)

Another option for investors to consider is the Betashares Australian Quality ETF. It aims to track an index that comprises 40 high-quality ASX shares. This includes companies such as CSL Limited (ASX: CSL) and Telstra Group Ltd (ASX: TLS).

Betashares Global Quality Leaders ETF (ASX: QLTY)

This is the international equivalent of the Betashares Australian Quality ETF. It gives investors exposure to a portfolio of approximately 150 global companies (excluding Australia). To be included in the ETF, a company needs to rank highly on four key metrics. These are return on equity, debt-to-capital, cash flow generation ability, and earnings stability. The ETF includes companies such as Alphabet, Microsoft, and Nvidia.

Bonds and cash

Three other ETFs that Bassanese is suggesting investors consider in the current environment have a focus on bonds and cash.

In respect to bonds, the chief economist notes that "market pricing suggests that rate cuts could be on the horizon. If markets are correct about this, and a US recession does occur, this could create favourable conditions for a rally in government bonds."

As a result, Bassanese has named U.S. Treasury Bond 20+ Year ETF – Currency Hedged (ASX: GGOV) and Australian Government Bond ETF (ASX: AGVT).

And if cash is more to your taste, then the Australian High Interest Cash ETF (ASX: AAA) could be worth considering.

Bassanese concludes:

This year has already presented many unexpected challenges for investors. Some, such as a potential US-led global recession, are already obvious and firmly in the sights of investors. Others – such as the recent spate of US bank failures – can catch investors off guard, remaining obscured until the very last moment. For investors who have positioned their portfolios appropriately, the impact might not be quite so severe.

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Today we look at an ASX ETF that tracks a specific industry, namely healthcare. And we look at why two financial pros list it as a 'buy'.

A defensive ASX ETF

In an ageing world with the global pandemic still very much in circulation, healthcare shares have received plenty of attention these past two years.

Aussie investors looking for exposure to international healthcare stocks with a single investment may wish to look into the BetaShares Global Healthcare ETF (ASX: DRUG).

This ASX ETF is invested in a wide range of international healthcare companies. Some 45% of them are involved in pharmaceuticals, with 19% focused on healthcare equipment, and 11% in the biotechnology space.

DRUG's top four holdings are UnitedHealth Group Inc (NYSE: UNH), Johnson & Johnson (NYSE: JNJ), AbbVie Inc (NYSE:ABBV) and Pfizer Inc (NYSE: PFE).

Year-to-date, this ASX ETF is down 2.4%. That compares to a 3.9% loss posted by the All Ordinaries Index (ASX: XAO) so far in 2022.

Why these two fundies list DRUG as a buy

Speaking with Livewire, Felicity Thomas from Shaw and Partners said DRUG was an ASX ETF to buy.

According to Thomas:

If you think we're going into a recessionary environment, you want to tilt your portfolio to be a little bit more defensive. Healthcare is defensive and we've got an ageing population globally, so I think it's a really good long-term play

Now we're not looking at an imminent recession here in Australia just yet. But a growing cohort of economists is beginning to predict that the United States could be heading down that road sooner than later. And where the world's biggest economy goes, most others tend to follow.

Steering clear of potential recessions, Ben Nash from Pivot Wealth also listed this ASX ETF as a buy, citing the immense expenditures going into healthcare globally.

Nash said:

I think that we're seeing huge amounts of money being spent on healthcare in Australia and globally. The US is one of the biggest global markets and healthcare costs are pretty staggering over there. I think that plus the secondary exposure to the property market makes this one a solid performer for the medium to long term.

Investors looking for an ASX ETF to add to their portfolios for the longer term may want to run their slide rule across DRUG.

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ETFs were barely around a decade ago, with only a handful of offerings available back then. But fast forward to today, and the Australian ETF sector is estimated to be worth more than $65 billion, according to reporting in the Australian Financial Review (AFR). Investors can't seem to get enough of low-cost index funds as well as thematic ETFs that offer easy exposure to entire industries in one single investment.

VanEck is a provider of ETFs in Australia and has several popular funds that ASX investors might be familiar with. These include the VanEck Vectors Australian Equal Weight ETF (ASX: MVW), the VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) and the VanEck Vectors Gold Miners ETF (ASX: GDX). The latter has recently made headlines after appreciating more than 35% in 2020 so far.

But VanEck has just announced that it's stable of ETFs is about to expand with 4 new offerings.

They will be:

1. A Video Gaming and eSports ETF, with the proposed ticker code of ESPO
2. A Global Healthcare Leaders ETF, with the proposed ticker code of HLTH
3. A Morningstar World ex Australia Wide Moat ETF, with the proposed ticker code of GOAT
4. A Morningstar Australian Moat Income ETF, with the proposed ticker code of DVDY

4 new VanEck ETFs to hit the market

The Video Gaming and eSports ETF will be an interesting addition, as (to my knowledge) there is no equivalent fund yet listed on the ASX. It will likely include US-based gaming shares like Activision Blizzard, Take-Two Interactive and EA Games. It might also include the US-listed giant Microsoft, which owns the Xbox brand of consoles. Japanese-listed gaming giants Sony (maker of PlayStation) and Nintendo (owner of the Pokemon and Mario brands) would also likely be considered. Chinese gaming giant Tencent Holdings is also a possibility.

In contrast, there are already a few ETF options to choose from that cover the global healthcare sector. These include the iShares Global Healthcare ETF (ASX: IXJ) and the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG). Both of these funds own global healthcare giants like Johnson & Johnson, Roche and Pfizer. It will be interesting to see if this new VanEck fund will follow a similar mould. According to VanEck, the new fund will differentiate itself by only holding companies that were "world selected for their financial fundamentals focused on 'growth at a reasonable price'".

The Morningstar World ex Australia Wide Moat ETF looks to be modelled on VanEck's successful MOAT ETF. It only holds US-based companies that display characteristics of a 'moat' or a sustainable competitive advantage. The new GOAT ETF will likely expand this framework for shares outside the US and Australia.

Finally, the new DVDY fund looks to join the likes of the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) in selecting only high dividend payers for the ETF. Like MOAT and GOAT, DVDY will rely on analysis from Morningstar to determine which shares to hold. These will apparently be selected for their "quality, financial health and high dividends".

Foolish takeaway

I think when it comes to ETFs, the more choice and competition, the better. The variety gives ASX investors the ability to select funds that might be tailored to their specific circumstances. It will also assist with keeping fees low across the board. Thus, I'm happy to see some new VanEck EFTs join the ASX space. I look forward to seeing how these funds go at launch.

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