Thanks to the convergence of AI, biotechnology, and our deepening understanding of human biology, we are closer than ever to transforming global healthcare systems. However, investing in this sector requires a strategic approach; on average, only a small fraction of drugs tested on humans make it to market, making stock picking risky.
Syfe’s Healthcare Innovation portfolio mitigates this by balancing exposure across genomics, biotechnology, pharmaceuticals, healthcare services, and medical devices, ensuring investors capture the upside of breakthroughs without being overexposed to the volatility of single-company clinical trials.
Rather than crack your head over identifying the next Moderna or Amgen, a portfolio like Syfe Healthcare Innovation provides convenience as well as diversified exposure to multiple innovations across healthcare verticals.
How we built the Healthcare Innovation portfolio
To build the Healthcare Innovation portfolio, our investment team screened potential exchange-traded funds (ETFs) based on our rigorous selection criteria, choosing six that provided broad exposure to healthcare investment opportunities. The team is also constantly monitoring new healthcare themes for possible inclusion.
Read more about our portfolio construction methodology here.
Our selection methodology includes looking at liquidity and size. Our ETFs are managed by well-established fund managers such as BlackRock and State Street Global Advisors.
Following our November 2025 portfolio re-optimization, the portfolio now holds the following:
Genomics: IDNA
Unlock the code of life: The era of simply sequencing DNA is over; we are now in the age of editing it to cure diseases at their source. The iShares Genomics Immunology and Healthcare ETF (IDNA) allows investors to target the companies pioneering CRISPR gene editing, precision oncology, and agricultural biology. Rather than focusing on temporary solutions, the companies in this fund, such as those developing targeted cancer therapies and treatments for complex autoimmune disorders, are working on functional cures that address the root causes of illness. Top holdings are Exelixis Inc, Revolution Medicines Inc, Gilead Sciences
Biotechnology and Medical Tech: IBB and HEAL
Capture the next wave of medical breakthroughs: The iShares Biotechnology ETF (IBB) and iShares Healthcare Innovation UCITS ETF (HEAL) provide a dual-pronged approach to the sector. IBB focuses on established and emerging biotech leaders in the US that are revolutionizing treatments for rare genetic diseases, such as Cystic Fibrosis and Sickle Cell Disease. Meanwhile, HEAL offers global exposure to the “digitization” of health, investing in firms driving medical robotics and telemedicine. Together, they cover the spectrum from molecular biology to the digital infrastructure that delivers modern care.
- Top 3 Holdings (IBB): Gilead Sciences, Vertex Pharmaceuticals, Amgen
- Top 3 Holdings (HEAL): Argenx, Gilead Sciences, UCB
Pharmaceuticals and Services: XLV and IHF
Invest in stability and the obesity revolution: The Health Care Select Sector SPDR Fund (XLV) and iShares U.S. Healthcare Providers ETF (IHF) offer exposure to the titans of the industry. XLV anchors the portfolio with pharmaceutical giants that are currently driving the massive global trend in GLP-1 weight-loss and diabetes drugs, while also covering major insurers. IHF complements this by focusing specifically on the providers and insurers that form the financial backbone of the US healthcare system, benefiting from an aging population and increased demand for managed care.
- Top 3 Holdings (XLV): Eli Lilly & Co, UnitedHealth Group, Johnson & Johnson
- Top 3 Holdings (IHF): UnitedHealth Group, Elevance Health, Cigna Group
Medical Devices: IHI and XHE
Harnessing robotics and AI in surgery: As elective surgeries rebound post-pandemic and hospitals integrate more technology, medical device manufacturers are seeing renewed growth. The iShares U.S. Medical Devices ETF (IHI) invests in the large-cap leaders dominating robotic surgery and diagnostic equipment. To ensure exposure to high-growth disruptors, the portfolio also includes the SPDR Health Care Equipment ETF (XHE), an equal-weight fund that tilts towards mid-and small-cap innovators developing specialized tools for neurosurgery and spinal care.
- Top 3 Holdings (IHI): Abbott Laboratories, Intuitive Surgical, Stryker Corp
- Top 3 Holdings (XHE): Alphatec Holdings, Integra Lifesciences, Masimo Corp
Investing in the future of healthcare
Healthcare innovation has spurred the development of many new medicines and therapies in areas from oncology to gene therapy.
If you are keen to invest in forward-thinking companies that have the potential to transform human health, Syfe’s Healthcare Innovation portfolio is one way to capitalise on this megatrend. With six ETFs providing diversified exposure to genomics, biotechnology, pharmaceuticals, medical devices and more, the portfolio is a way to invest in future healthcare leaders and current top performers alike.
There is no minimum investment, no lock-in period and no brokerage fees. As an added advantage, Syfe will manage your portfolio with free dividend reinvestment and automatic rebalancing, for fees as low as 0.35% per year.
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