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DRUG

$8.40+0.24%Healthcare26/100
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BetaShares Global Healthcare ETF · BetaShares

Data as at 29 March 2026

TL;DR

Tracks global healthcare companies — pharmaceutical, biotechnology, medical devices, and managed care — with AUD/USD hedging applied. Returns reflect healthcare sector performance in AUD terms.

MER (Annual Fee)
0.57%
#3 lowest in Healthcare
1Y Return
+2.8%
3Y Return (p.a.)
+4.4%
Dividend Yield
0.38%
Trailing 12 months
AUM
$180.2M
Assets under management
Avg Daily Turnover
$484K
Avg shares × unit price
Unit Price
$8.40
As at 29 March 2026
Provider
BetaShares
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Strategy

Follows a Nasdaq healthcare index covering global (ex-Australia) healthcare companies. Currency hedged to AUD. Managed by BetaShares. Covers all major healthcare sub-sectors.

Top Holdings

Key Fact

Eli Lilly became one of the world's most valuable companies in 2023-2024 following commercial success of its GLP-1 weight loss drug Mounjaro. Investors holding DRUG through this period had approximately 10% exposure to Eli Lilly.

Suited for

Investors who want global healthcare sector exposure with the AUD/USD exchange rate removed from the equation. Healthcare is considered a defensive sector — demand for medicine and medical care is relatively consistent regardless of economic cycles.

Risks

Biotech companies within the fund carry binary risk from FDA clinical trial results. Drug pricing regulation and reimbursement changes affect pharmaceutical companies. AUD hedging costs are embedded in the fee.

DRUG Comparisons

ETFCheck Score26/100
Fees (40%)15
Fund Size (25%)21
Liquidity (20%)55
Yield (15%)26
How scores are calculated →
Other Healthcare ETFs
IXJ
0.47% MER
43
HLTH
0.45% MER
15View all Healthcare ETFs →

Frequently Asked Questions - DRUG

How does DRUG differ from broader healthcare ETFs like HLTH or IHD available on the ASX?+
DRUG specifically targets pharmaceutical and biotechnology companies focused on drug development and manufacturing, deliberately excluding medical device makers, health insurers, and hospital operators that feature in broader healthcare ETFs. This makes DRUG a more concentrated play on drug innovation pipelines, patent-protected revenue streams, and biotech breakthroughs. Compared to VanEck's HLTH or iShares IHD, DRUG offers higher potential upside from blockbuster drug approvals but carries more sector-specific risk, particularly around patent cliffs and regulatory outcomes from the FDA.
What role does DRUG play in a diversified Australian portfolio and who should consider it?+
DRUG suits Australian investors seeking international healthcare exposure that is largely absent from the ASX, where CSL essentially dominates the sector. With a 0.57% MER and 12.8% one-year return, DRUG provides defensive growth characteristics - pharma revenues tend to be recession-resistant since patients need medication regardless of economic cycles. It complements ASX-heavy portfolios by adding USD-denominated earnings and sector diversification. SMSF investors in accumulation phase may find DRUG useful as a 5-10% allocation to reduce correlation with Australian banks and miners.
Why is DRUG's yield only 0.62% and does it generate any franking credits for Australian tax purposes?+
DRUG's low 0.62% yield reflects the pharmaceutical and biotech industry's tendency to reinvest profits into expensive R&D pipelines and clinical trials rather than pay generous dividends. Major holdings typically prioritise drug development spending over shareholder distributions. As an internationally focused ETF, DRUG generates zero franking credits - all distributions are foreign income assessable at your marginal tax rate with no franking offset available. SMSF members in pension phase receive no refundable franking benefit, making DRUG primarily a capital growth holding rather than an income strategy.
What specific risks should Australian investors understand before buying DRUG?+
Key risks include patent cliff exposure, where major holdings face revenue drops when blockbuster drug patents expire and generic competition enters. FDA regulatory decisions can cause sharp price swings - a single failed clinical trial can dramatically impact concentrated biotech positions within the fund. Currency risk is also material since DRUG is unhedged and a rising Australian dollar would reduce AUD-denominated returns. Additionally, political risk from US drug pricing reform legislation could compress pharmaceutical margins, impacting the earnings outlook across DRUG's predominantly American holdings.