Best Healthcare etf

Screening Filters

1. monthly_average_dollar_volume ≥ 100,000

   • Purpose: Ensure the ETFs are reasonably liquid and trade actively.
   • Rationale: When looking for the “best” Healthcare ETF, you typically want funds that are easy to enter and exit without moving the market or suffering from large bid–ask spreads. A minimum average dollar volume of $100k helps filter out tiny, illiquid niche funds that might be hard to trade or have poor pricing efficiency.

2. year_price_change_pct ≥ 0%

   • Purpose: Focus on ETFs that have at least not lost money over the last year.
   • Rationale: While past performance doesn’t guarantee future returns, a non‑negative 1‑year price change removes clearly underperforming funds. For a “best” ETF search, this is a simple performance quality threshold: ETFs that have held up or gained over the past year are more consistent with what most investors mean by “best” than those with large recent losses.

3. themes = “Health & Biotech Equities”

   • Purpose: Restrict results to ETFs whose primary focus is healthcare and/or biotech stocks.
   • Rationale: Your request is specifically for a Healthcare ETF. Using a healthcare/biotech theme ensures the funds are actually concentrated in the healthcare sector (pharma, medical devices, biotech, healthcare services, etc.) rather than broader market or unrelated sector ETFs.

4. expense_ratio ≤ 0.75%

   • Purpose: Filter for reasonably low-cost healthcare ETFs.
   • Rationale: Cost is a key factor in deciding what’s “best” in ETF land. Higher expense ratios directly reduce investor returns over time. Capping the expense ratio at 0.75% excludes the most expensive, niche, or actively managed funds, and leans you toward more cost-efficient options that are often better long-term holdings.

5. inception_date ≤ 2023-01-01

   • Purpose: Require that the ETF has at least a modest performance history.
   • Rationale: Very new ETFs (launched after 2023-01-01) won’t have enough track record to evaluate consistency, volatility, and behavior across different market conditions. By limiting to funds launched on or before that date, you focus on healthcare ETFs with at least about a year of live history, which is more appropriate when searching for “best” rather than speculative new products.

Why Results Match:

• The healthcare/biotech theme ensures all results are genuinely Healthcare ETFs, aligning directly with your sector request.
• The liquidity filter (dollar volume) and expense ratio cap target ETFs that are both tradable and cost-efficient—two core attributes of “best” in practice.
• The 1-year performance screen keeps out clearly lagging funds, and the inception date requirement avoids unproven newcomers, focusing instead on established healthcare ETFs with observable track records.