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A recent report<\/a> from VanEck Australia suggests that after two down years for healthcare stocks, emerging tailwinds could spark a rebound.\u00a0<\/p>\n The report said healthcare stocks have lagged over this period, mostly due to potential US policy effects on the growth rates for biopharma, healthcare plans, and medical technology firms.<\/p>\n The tide is turning<\/p>\n According to VanEck, over the past two years, healthcare stocks underperformed relative to the broader market.\u00a0<\/p>\n This is despite catalysts such as innovation and progress in weight-loss drugs.<\/p>\n However, the ASX ETF<\/a> provider said the tide could now be turning.\u00a0<\/p>\n Recently, there has been some clarity on healthcare policies, increased M&A activity, as well as interest from investors who are rotating back into defensive growth and quality earnings due to the volatile macro environment.<\/p>\n Additionally, recent earnings season results from Q3 in the US shows over 80% of reported healthcare companies have “surprised to the upside”, and price reactions post earnings have also been positive.\u00a0<\/p>\n Looking ahead, the long-term structural growth drivers, including ageing populations, chronic disease management, med-tech adoption, and digital health, remain present. <\/p>\n Emerging tailwinds\u00a0<\/p>\n VanEck pointed towards changing policy in the US as one emerging factor set to benefit the sector.\u00a0<\/p>\n It said there has been renewed clarity on US drug pricing policy following the Pfizer\u2013Trump administration agreement<\/a>.\u00a0<\/p>\n The agreement included exchanging Medicaid cost cuts for tariff relief.\u00a0<\/p>\n The ETF provider said this has lowered market fears of sweeping “most-favoured-nation” (MFN) mandates that would have pressured pricing across the sector.\u00a0<\/p>\n Pfizer, Merck, and Johnson & Johnson all experienced price rises after the announcement due to improved sentiment toward the sector.<\/p>\n VanEck believes the sector is now trading at a relative value to the broader market.\u00a0<\/p>\n With macro uncertainty at the forefront of investors’ minds, many are rotating toward defensive growth, benefiting healthcare broadly and many investors are targeting those companies with quality characteristics and\/or wide moats.<\/p>\n How to target global healthcare stocks<\/p>\n Healthcare stocks are relatively underexposed on the ASX compared to sectors like financial <\/a>(Big four banks) and materials<\/a> (mining giants<\/a>).\u00a0<\/p>\n This means Aussie investors are often looking overseas to tap into healthcare markets. <\/p>\n The team at VanEck believes long-term structural trends supporting the sector could make it an ideal time to gain exposure to international healthcare stocks, including:\u00a0<\/p>\n The combination of global population growth and ageing demographics.<\/p>\n Increasing prevalence of chronic diseases, which will continue to drive up the demand for healthcare.<\/p>\n Increasing expenditures in emerging economies that need to close the gap to match the levels of spending in developed economies, as their growing and increasingly wealthy populations will demand it.<\/p>\n For investors looking for diversification into global healthcare stocks, there are several ASX ETFs offering focussed exposure to this sector.\u00a0<\/p>\n Investors may consider:\u00a0<\/p>\n Vaneck Vectors Global Health Leaders ETF (ASX: HLTH<\/a>) \u2013 Gives investors exposure to a diversified portfolio of the largest international companies from the global healthcare sector.<\/p>\n iShares Global Healthcare ETF (ASX: IXJ<\/a>) \u2013 Made up of more than 100 global equities in the healthcare sector.<\/p>\n BetaShares Global Healthcare ETF \u2013 Currency Hedged (ASX: DRUG<\/a>) \u2013 Aims to track the performance of the largest global healthcare companies (excluding Australia).\u00a0<\/p>\n