iShares Global Healthcare ETF outperforms SPDR Biotech ETF with lower risk.

Investors looking to bet on healthcare in 2026 have a clear choice: the broad global reach of the iShares Global Healthcare ETF or the high-growth bets of the State Street SPDR Biotech ETF. Both funds have delivered strong returns recently, but they take very different approaches to one of the market’s most resilient sectors.

The healthcare sector has surged about 30% over the past year, driven by drug approvals, aging populations, and steady demand for medical innovation. That momentum is expected to continue, but the path forward depends on how much risk investors are willing to take. The iShares fund spreads bets across global giants like Eli Lilly, Johnson & Johnson, and AbbVie, offering stability and steady dividends. The SPDR Biotech ETF, by contrast, piles into smaller U.S. biotech firms with higher upside—and higher risk. It’s a classic trade-off: stability versus potential windfalls.

Expense ratios add another wrinkle. The SPDR Biotech ETF charges 0.35%, slightly cheaper than iShares’ 0.46%. But dividends tell a different story. iShares paid out $1.44 per share over the past year, yielding about 1.4% at today’s prices, while SPDR paid just $0.57 per share, yielding 0.4%. The iShares fund is also far less volatile, with a beta of 0.85 compared to 1.45 for the biotech ETF—meaning it swings less in market storms.

Looking ahead, iShares’ global mix protects against regional downturns but may lag if U.S. biotech breakthroughs ignite. The SPDR fund offers explosive upside if new drugs get approved or acquired, but it’s also more exposed to regulatory setbacks and clinical failures. For long-term investors, the choice comes down to comfort with risk. A balanced portfolio might include both, but anyone betting big on 2026 should decide which path aligns with their stomach for volatility.