3 Best Healthcare ETFs in Canada (June 2026)
The best healthcare ETFs in Canada include XHC.TO (~0.40% MER), HHL.TO (~0.60%), and ZUH.TO (~0.39%). These ETFs provide exposure to global healthcare companies, offering a mix of defensive stability and growth potential, making them suitable as a satellite position in a diversified portfolio.
Healthcare ETFs are designed for Canadian investors seeking exposure to a defensive yet growth-oriented sector. ETFs like XHC.TO, HHL.TO, and ZUH.TO provide access to global healthcare companies across pharmaceuticals, biotechnology, and medical devices.
The key advantage of healthcare ETFs is their balance between stability and growth. Healthcare demand tends to remain consistent regardless of economic conditions, but innovation in areas like biotech and pharmaceuticals can also drive long-term returns.
In this guide, we break down the best healthcare ETFs in Canada, comparing diversification, fees, and risk so you can decide how they fit into your TFSA, RRSP, or balanced portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top XHC.TO iShares Global Healthcare (CAD Hedged) | — | $490M | 1.94% | -3.65% | +9.02% |
HHL.TO Harvest Healthcare Leaders Income ETF | — | $1.7B | 10.50% | -11.40% | +4.47% |
ZUH.TO BMO Equal Weight US Health Care (CAD Hedged) | — | $170M | 0.56% | -2.68% | +9.18% |
What Is an ETF?
A healthcare ETF in Canada is an exchange-traded fund that invests in companies within the healthcare sector, including pharmaceuticals, biotechnology, medical equipment, and healthcare services. These ETFs provide exposure to a defensive sector with long-term growth potential.
For example, XHC.TO (~0.40% MER) tracks U.S. healthcare companies, offering exposure to major global leaders. HHL.TO (~0.60% MER) focuses on high-dividend healthcare stocks while using a covered call strategy to enhance income. ZUH.TO (~0.39% MER) provides exposure to U.S. healthcare companies with currency hedging to CAD.
Healthcare ETFs are commonly used in TFSAs and RRSPs for diversification and stability. Investors should consider concentration risk, regulatory changes, and innovation cycles within the sector.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares Global Healthcare (CAD Hedged)
$68.05
-3.65% YTD
Returns
YTD
-3.65%
1Y
+9.02%
3Y
+4.16%
5Y
+3.88%
Harvest Healthcare Leaders Income ETF
$6.84
-11.40% YTD
US healthcare companies combine innovation with consistent demand. We all need healthcare, especially as the developed world ages and the developing world gets richer. Healthcare companies create value from new drugs, treatments, and technologies. HHL offers steady income and growth opportunities from large-cap US healthcare leaders.
Returns
YTD
-11.40%
1Y
+4.47%
3Y
+4.53%
5Y
+5.46%
BMO Equal Weight US Health Care (CAD Hedged)
$67.59
-2.68% YTD
Returns
YTD
-2.68%
1Y
+9.18%
3Y
+0.41%
5Y
-2.16%
Pros & Cons
Pros
- Exposure to a defensive sector with consistent demand
- Long-term growth potential driven by innovation in healthcare and biotech
- Diversification across pharmaceuticals, medical devices, and services
- Can provide stability during economic downturns
Cons
- Sector concentration increases risk compared to broad-market ETFs
- Regulatory and policy changes can impact healthcare companies
- Some ETFs (like HHL.TO) use covered calls, limiting upside
- Higher MERs compared to broad index ETFs
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best healthcare ETF in Canada?
XHC.TO is one of the best healthcare ETFs in Canada because it provides diversified exposure to U.S. healthcare leaders. Investors looking for income may consider HHL.TO, while ZUH.TO offers a similar strategy with currency hedging.
Are healthcare ETFs a good investment?
Healthcare ETFs can be a strong investment due to their defensive nature and long-term growth potential. The sector benefits from consistent demand and innovation, but investors should be aware of regulatory risks and sector concentration.
Should I include healthcare ETFs in my portfolio?
Healthcare ETFs can add diversification and stability to a portfolio. They are often used as a satellite allocation alongside broader market ETFs to balance growth and defensive exposure.