Top Healthcare ETFs in India (2026)

The Nifty Healthcare Index is a sectoral index on the NSE that tracks the performance of listed healthcare companies in India. It includes companies from areas such as pharmaceuticals, hospitals, diagnostics, healthcare services, medical devices, and other healthcare-related businesses. The index helps investors track the broader performance of India’s healthcare sector, including pharma manufacturers, hospital chains, diagnostic companies, and healthcare service providers.

Healthcare ETFs are exchange-traded funds that invest in companies operating in the healthcare sector, including pharmaceuticals, biotechnology, medical devices, hospitals, diagnostics, and healthcare services. These ETFs aim to track the performance of a healthcare-focused index by holding a diversified portfolio of healthcare-related stocks. Since they trade on stock exchanges like individual stocks, investors can buy or sell ETF units during market hours.

1. Axis NIFTY Healthcare ETF: Axis NIFTY Healthcare ETF is a passive fund that invests in healthcare companies across pharmaceuticals, hospitals, diagnostics and allied services, aiming to mirror the index’s performance, subject to tracking error, expenses and market movements.
2. Aditya BSL Nifty Healthcare ETF: Aditya BSL Nifty Healthcare ETF is an exchange-traded fund that offers exposure to healthcare-related companies through a single listed instrument, with returns linked to the index’s performance, tracking difference, expense ratio and sector movement.
3. ICICI Prudential Nifty Healthcare ETF: ICICI Prudential Nifty Healthcare ETF is a passive ETF that tracks the same healthcare-sector companies as the index, allowing investors to access diversified exposure to the healthcare sector through a stock exchange-listed fund.
4. Motilal Oswal BSE Healthcare ETF: Motilal Oswal BSE Healthcare ETF is a passive exchange-traded fund that invests in listed healthcare companies across pharmaceuticals, hospitals, diagnostics and medical services, with returns depending on index performance and tracking efficiency.
5. DSP Nifty Healthcare ETF: DSP Nifty Healthcare ETF is an exchange-traded fund that offers sector-based exposure to healthcare companies, including pharmaceuticals, hospitals and diagnostics, while carrying risks linked to concentration, market movements and tracking error.

Investing in Healthcare ETFs in India is straightforward:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Investors can use the Tickertape Stock Screener to analyse the list of Healthcare ETFs and compare them to identify the best Healthcare ETF in India based on various factors.
3. Place a buy order.

• Passive Fund Structure: Healthcare ETFs do not actively select stocks. Instead, they aim to replicate the performance of healthcare indices such as the Nifty Healthcare Index by investing in the same companies.
• Sector-Based Exposure: Unlike diversified equity ETFs, healthcare ETFs invest only in companies from the healthcare sector, including pharmaceuticals, hospitals, diagnostics, biotechnology and healthcare services.
• Exchange-Traded Units: Healthcare ETFs are listed on stock exchanges and trade throughout the market session. Investors can buy or sell units during trading hours, similar to listed stocks.
• Diversified Holdings: A single healthcare ETF holds multiple healthcare companies, reducing reliance on a single stock’s performance while providing exposure to different segments of the sector.
• Tracking Error: Since healthcare ETFs aim to mirror an index, their returns may differ slightly due to factors such as fund expenses, cash holdings, portfolio rebalancing, and market liquidity.
• Expense Ratio: Every healthcare ETF charges an annual expense ratio to cover fund management costs. Although these costs are generally lower than those of actively managed funds, they can still affect net returns over time.

• Pharma Plus Hospitals Exposure: These ETFs are not limited to pharma alone. The Nifty Healthcare Index includes pharma, hospitals and healthcare service companies, with Apollo Hospitals and Max Healthcare among the top constituents in 2026.
• Access to a Growing Sector: India’s pharmaceutical market is estimated at around ₹5.20 lakh cr in 2026 and is projected to reach nearly ₹6.89 lakh cr by 2031. Healthcare ETFs offer listed exposure to the broader healthcare and pharma theme.
• Lower Stock-Selection Risk: Instead of selecting individual healthcare stocks, ETFs such as ICICI Prudential Nifty Healthcare ETF or DSP Nifty Healthcare ETF track a basket of healthcare companies. This reduces dependence on one company’s earnings, approvals or regulatory events.

• Sector Concentration Risk: Healthcare ETFs focus on a single sector. If pharma, hospitals or diagnostics underperform, ETFs such as Axis NIFTY Healthcare ETF or Aditya BSL Nifty Healthcare ETF may also be affected.
• Top-Stock Concentration: The Nifty Healthcare Index had Sun Pharmaceutical Industries at around 18.14% weight in 2026. A sharp move in large constituents can meaningfully affect ETF performance.
• Valuation Risk: The Nifty Healthcare Index traded at a P/E of around 41.81 in 2026. Higher valuations can make ETF returns more sensitive to earnings disappointments or market corrections.
• Regulatory and Pricing Risk: Healthcare companies face drug pricing rules, approvals, export regulations and compliance requirements. Recent changes to India’s drug pricing framework show how regulatory developments can affect the sector.
• Tracking Error Risk: ETFs aim to mirror their index, but returns may differ due to expenses, cash holdings, portfolio rebalancing, and trading spreads. This applies to Nifty Healthcare ETFs as well as Motilal Oswal BSE Healthcare ETF.
• Liquidity Risk: Some sector ETFs may have lower trading volumes than broad-market ETFs. Wider bid-ask spreads can affect entry and exit prices, especially during volatile market conditions.

• Sector Mix: Healthcare ETFs are not pure pharma funds. The Nifty Healthcare Index includes pharma, hospitals, diagnostics and healthcare services, so investors may check whether the ETF’s exposure matches the healthcare segment they want to track.
• Valuation Level: The Nifty Healthcare Index traded at a P/E of 41.81 in 2026. Higher valuations can make healthcare ETFs more sensitive to earnings misses, regulatory changes or market corrections.
• Expense Ratio: Costs vary across ETFs. For example, Axis NIFTY Healthcare ETF had an expense ratio of 0.39% as of 3rd July 2026, which directly affects net returns.
• Liquidity and Spreads: Since ETFs trade on exchanges, trading volume and bid-ask spread matter. Sector ETFs can be less liquid than broad-market ETFs, so entry and exit prices may differ from NAV.