XLV - 3 Healthcare Mutual Funds To Grab As the Sector Continues to Rebound | Benzinga
Healthcare did not have a great 2023, even as markets turned around from the depths of the year prior. The sector, which roughly accounts for 13% of the S&P 500, lagged last year as investors flocked to massive tech and growth stocks that propelled the markets. A late-year rally in 2023 saw the sector pairing its losses for the year and ending the 12 months on a positive note, even if only just. The turnaround, however, did not stop it from becoming one of the S&P 500's worst-performing sectors in 2023, rising just 0.3% compared to the benchmark index's 24% jump.
Yet, upsides are being witnessed for the sector of late. Health spending in the United States has been forecast to grow at an average annual rate of 5.4% for 2019-2028 and should reach $6.2 trillion by 2028. While the industry faces labor shortages and recessionary pressures in the post-pandemic world marked by a European war, it is currently pitted to grow at a higher rate than the overall economy.
Globally, approximately $8.3 trillion is being spent on healthcare, with almost half of that, roughly $3.8 trillion, coming from the United States. Considering the fact that the healthcare sector is growing faster than the overall world economy, these figures are expected to rise substantially by the turn of the decade.
Several societal and demographic upheavals are ...