VHT holds US healthcare companies of all sizes: pharmaceuticals, biotechnology, medical devices and equipment, managed care and healthcare services. Large holdings such as Eli Lilly, UnitedHealth Group, Johnson & Johnson and AbbVie make up a significant share, and small and mid-cap companies add a smaller part. Healthcare demand is less sensitive to the economic cycle than most sectors, and aging populations support long-term growth. Drug pricing policy and regulation are the main political risks. Compared with XLV, VHT includes small and mid-cap healthcare companies.
