Thanks to strong drivers such as an aging population, increased spending on healthcare by developing nations, and technological advancements in medical devices and prescription drugs, healthcare stocks have outperformed the broader market. Over the past year, the Health Care Select Sector SPDR ETF (XLV) has gained 2.7%, outpacing the S&P 500, which lost 6.8%.
In addition, according to Verified Market Research, the global healthcare market is projected to reach $665.37 billion by 2028. Despite still-elevated inflation, total health expenditure is expected to continue on an upward trend across the globe for the next five years and reach $6.20 trillion, as per the Centers for Medicare and Medicaid Services.
