Healthcare ETFs are near one-year highs, supported by an improving earnings outlook, positive trial data, relatively attractive valuations, and a shift out of crowded AI/tech trades. The State Street Health Care Select Sector SPDR ETF (XLV) rose 23.2% over six months (as of Oct. 20, 2026), versus about 9.2% for the State Street SPDR S&P 500 ETF Trust (SPY). S&P 500 healthcare companies are expected to post double-digit earnings growth from Q4 2026 through 2027, and sector M&A value has reached nearly $284 billion this year, approaching 2025's $306 billion. Notable 2026 readouts include Eli Lilly's retatrutide (28.3% average weight loss over 80 weeks at the 12-mg dose) and Vertex's povetacicept (49.8% proteinuria reduction vs. placebo at Week 36). The article also profiles the VanEck Biotech ETF (BBH, up 30.8% YTD) and Invesco Biotechnology & Genome ETF (PBE, up 20.5% YTD).
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SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/22/2026 | 764.02 |
| Change that session | -1.17% |
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