We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bet on These Healthcare ETFs to Benefit From the Aging US Population
Read MoreHide Full Article
Key Takeaways
Aging U.S. population is boosting demand for healthcare products targeting age-related conditions.
Healthcare ETFs offer diversified exposure to firms serving the aging population.
XLV gained 19% over the past year, with significant exposure to drugmakers.
The U.S. aging population is growing at an unprecedented pace, fundamentally reshaping the healthcare investment landscape. According to the National Council on Aging, adults aged 65 and older comprised 18.9% of the U.S. population in 2025 — roughly 64.6 million people — and this share is projected to reach 23.4% by 2060.
In particular, the Baby Boomer generation is driving this surge, with approximately 10,000 people turning 65 each day. By 2030, all Baby Boomers will be 65 or older, with one in five Americans reaching retirement age (as per the U.S. Census Bureau data).
This demographic shift is directly benefiting healthcare companies like AbbVie, Amgen and others developing drugs, surgical equipment and medical devices for age-related conditions.
For example, year-to-date, shares of AbbVie (ABBV - Free Report) and Amgen (AMGN - Free Report) have surged 20.1% and 26.1%, respectively, as demand grows for their age-focused treatments.
Investors seeking to capitalize on these growth opportunities may consider healthcare exchange-traded funds (ETFs) that hold companies developing medicines and manufacturing surgical equipment to meet the healthcare needs of the aging population.
Before assessing these funds in detail, it is important to understand how an aging population benefits healthcare stocks and how the industry is expected to perform in the years ahead. These factors can help investors make informed investment decisions.
The Aging Demographic and Healthcare Stock Connection
The connection between aging demographics and healthcare stock performance is direct: as the population ages, demand for medical treatments targeting age-related diseases increases.
Nearly 80% of older adults have at least one chronic condition, driving demand for pharmaceuticals, medical devices and surgical interventions. Age-related conditions include cardiovascular disease, type 2 diabetes, various cancers, and neurodegenerative disorders like Alzheimer’s and dementia.
Consequently, several healthcare companies manufacture drugs and medical products to meet the needs of the aging population, with many having expanded their offerings in this area in recent years.
For example, Eli Lily (LLY - Free Report) , a dominant player in diabetes and weight-loss drug management, has been expanding aggressively into aging-related healthcare lately. In March 2026, Lilly entered into a $2.75 billion global R&D agreement with Insilico Medicine to license and accelerate AI-driven drug discovery for age-related diseases.
The company’s GLP-1 and GIP platform drugs (Mounjaro / Zepbound) are being heavily expanded into clinical trials targeting conditions disproportionately affecting older adults, including heart failure, chronic kidney disease and knee osteoarthritis. To this end, it is imperative to mention that the company has presented landmark clinical data this month from its SURMOUNT-5 trial showing that its blockbuster drug Tirzepatide dramatically slows down biological aging.
Other stocks like AbbVie, Amgen, Abbott Laboratories and Edwards Lifesciences are well-established companies catering to age-old diseases.
AbbVie offers a broad portfolio of therapies across neuroscience, immunology, eye care and oncology, targeting conditions that are prevalent among older adults. The company’s Vyalev is the first and only 24-hour continuous subcutaneous (under-the-skin) infusion of a levodopa-based therapy offered to adults with advanced Parkinson's disease experiencing motor fluctuations.
Amgen develops and provides biologic therapies and treatments that address chronic and age-related conditions prevalent in older adults, particularly focusing on bone health, cardiovascular disease and muscle aging. The company’s XGEVA (denosumab) is used to treat postmenopausal osteoporosis and reduce bone fractures in older adults (over 50 years).
Edwards Lifesciences (EW - Free Report) provides structural heart technologies for elderly patients with aortic stenosis. The company’s SAPIEN transcatheter heart valve platform allows minimally invasive replacement of diseased aortic valves to treat severe aortic stenosis that predominantly impacts aging populations.
Abbott Laboratories (ABT - Free Report) manufactures medical devices that help older adults in the United States manage chronic conditions, cardiovascular disease, diabetes and movement disorders. The company’s AVEIR DR is the world's first dual-chamber leadless pacemaker, which is smaller than a AAA battery and uses wireless communication to treat irregular heart rhythms.
What Lies Ahead?
The outlook for medical companies catering to old age people is compelling. By 2050, approximately 82-90 million Americans will be 65 and older, about double the number in 2012, with the population aged 85 and older nearly tripling (according to U.S. Census Bureau data).
This surging U.S. aging population is expected to translate into sustained, long-term revenue growth across biopharma, medical device and specialized care providers.
Healthcare ETFs to Buy
Investors seeking to capitalize on the potential revenue growth of these companies may consider healthcare ETFs, which offer diversification across the pharmaceutical, medical device and biotechnology industries while reducing reliance on individual stocks and providing exposure to the aging population trend.
Based on that, investors can bet on the following healthcare ETFs that stand to benefit further from the demographic shifts.
State Street Health Care Select Sector SPDR ETF (XLV - Free Report)
This fund, with assets under management (AUM) worth $44.49 billion, offers exposure to 61 companies in the pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology industries. LLY holds the first spot in this fund, with a 15.13% weight, while ABBV holds the second position with a 7.95% weight.
AMGN holds the seventh spot in this fund, with a 3.61% weight, while ABT holds the ninth position with a 2.82% weight. XLV has risen 19% over the past year and charges 8 basis points (bps) in fees.
This fund, with net assets worth $21.8 billion, includes 416 companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products. LLY holds the first spot in this fund, with a 12.79% weight, while ABBV holds the third position with a 6.26% weight.
AMGN holds the sixth spot in this fund, with a 3.21% weight, while ABT holds the eighth position with a 2.66% weight. VHT has soared 18.7% over the past year and charges 9 bps in fees.
This fund, with net assets worth $87.9 million, includes 83 companies positioned to serve the world’s growing senior population through exposure to health care, pharmaceuticals, senior living facilities and other sectors that contribute to increasing lifespans and extending quality of life in advanced age. ABBV holds the first spot in this fund, with a 3.88% weight, while LLY holds the second position with a 3.67% weight.
AMGN holds the third spot in this fund, with a 3.49% weight, while EW holds the sixth position with a 3.24% weight. AGNG has gained 6.7% over the past year and charges 50 bps in fees.
View the Zacks #1 Rank List
Image: Bigstock
Bet on These Healthcare ETFs to Benefit From the Aging US Population
Key Takeaways
The U.S. aging population is growing at an unprecedented pace, fundamentally reshaping the healthcare investment landscape. According to the National Council on Aging, adults aged 65 and older comprised 18.9% of the U.S. population in 2025 — roughly 64.6 million people — and this share is projected to reach 23.4% by 2060.
In particular, the Baby Boomer generation is driving this surge, with approximately 10,000 people turning 65 each day. By 2030, all Baby Boomers will be 65 or older, with one in five Americans reaching retirement age (as per the U.S. Census Bureau data).
This demographic shift is directly benefiting healthcare companies like AbbVie, Amgen and others developing drugs, surgical equipment and medical devices for age-related conditions.
For example, year-to-date, shares of AbbVie (ABBV - Free Report) and Amgen (AMGN - Free Report) have surged 20.1% and 26.1%, respectively, as demand grows for their age-focused treatments.
Investors seeking to capitalize on these growth opportunities may consider healthcare exchange-traded funds (ETFs) that hold companies developing medicines and manufacturing surgical equipment to meet the healthcare needs of the aging population.
Before assessing these funds in detail, it is important to understand how an aging population benefits healthcare stocks and how the industry is expected to perform in the years ahead. These factors can help investors make informed investment decisions.
The Aging Demographic and Healthcare Stock Connection
The connection between aging demographics and healthcare stock performance is direct: as the population ages, demand for medical treatments targeting age-related diseases increases.
Nearly 80% of older adults have at least one chronic condition, driving demand for pharmaceuticals, medical devices and surgical interventions. Age-related conditions include cardiovascular disease, type 2 diabetes, various cancers, and neurodegenerative disorders like Alzheimer’s and dementia.
Consequently, several healthcare companies manufacture drugs and medical products to meet the needs of the aging population, with many having expanded their offerings in this area in recent years.
For example, Eli Lily (LLY - Free Report) , a dominant player in diabetes and weight-loss drug management, has been expanding aggressively into aging-related healthcare lately. In March 2026, Lilly entered into a $2.75 billion global R&D agreement with Insilico Medicine to license and accelerate AI-driven drug discovery for age-related diseases.
The company’s GLP-1 and GIP platform drugs (Mounjaro / Zepbound) are being heavily expanded into clinical trials targeting conditions disproportionately affecting older adults, including heart failure, chronic kidney disease and knee osteoarthritis. To this end, it is imperative to mention that the company has presented landmark clinical data this month from its SURMOUNT-5 trial showing that its blockbuster drug Tirzepatide dramatically slows down biological aging.
Other stocks like AbbVie, Amgen, Abbott Laboratories and Edwards Lifesciences are well-established companies catering to age-old diseases.
AbbVie offers a broad portfolio of therapies across neuroscience, immunology, eye care and oncology, targeting conditions that are prevalent among older adults. The company’s Vyalev is the first and only 24-hour continuous subcutaneous (under-the-skin) infusion of a levodopa-based therapy offered to adults with advanced Parkinson's disease experiencing motor fluctuations.
Amgen develops and provides biologic therapies and treatments that address chronic and age-related conditions prevalent in older adults, particularly focusing on bone health, cardiovascular disease and muscle aging. The company’s XGEVA (denosumab) is used to treat postmenopausal osteoporosis and reduce bone fractures in older adults (over 50 years).
Edwards Lifesciences (EW - Free Report) provides structural heart technologies for elderly patients with aortic stenosis. The company’s SAPIEN transcatheter heart valve platform allows minimally invasive replacement of diseased aortic valves to treat severe aortic stenosis that predominantly impacts aging populations.
Abbott Laboratories (ABT - Free Report) manufactures medical devices that help older adults in the United States manage chronic conditions, cardiovascular disease, diabetes and movement disorders. The company’s AVEIR DR is the world's first dual-chamber leadless pacemaker, which is smaller than a AAA battery and uses wireless communication to treat irregular heart rhythms.
What Lies Ahead?
The outlook for medical companies catering to old age people is compelling. By 2050, approximately 82-90 million Americans will be 65 and older, about double the number in 2012, with the population aged 85 and older nearly tripling (according to U.S. Census Bureau data).
This surging U.S. aging population is expected to translate into sustained, long-term revenue growth across biopharma, medical device and specialized care providers.
Healthcare ETFs to Buy
Investors seeking to capitalize on the potential revenue growth of these companies may consider healthcare ETFs, which offer diversification across the pharmaceutical, medical device and biotechnology industries while reducing reliance on individual stocks and providing exposure to the aging population trend.
Based on that, investors can bet on the following healthcare ETFs that stand to benefit further from the demographic shifts.
State Street Health Care Select Sector SPDR ETF (XLV - Free Report)
This fund, with assets under management (AUM) worth $44.49 billion, offers exposure to 61 companies in the pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology industries. LLY holds the first spot in this fund, with a 15.13% weight, while ABBV holds the second position with a 7.95% weight.
AMGN holds the seventh spot in this fund, with a 3.61% weight, while ABT holds the ninth position with a 2.82% weight. XLV has risen 19% over the past year and charges 8 basis points (bps) in fees.
Vanguard Health Care ETF (VHT - Free Report)
This fund, with net assets worth $21.8 billion, includes 416 companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products. LLY holds the first spot in this fund, with a 12.79% weight, while ABBV holds the third position with a 6.26% weight.
AMGN holds the sixth spot in this fund, with a 3.21% weight, while ABT holds the eighth position with a 2.66% weight. VHT has soared 18.7% over the past year and charges 9 bps in fees.
Global X Aging Population ETF (AGNG - Free Report)
This fund, with net assets worth $87.9 million, includes 83 companies positioned to serve the world’s growing senior population through exposure to health care, pharmaceuticals, senior living facilities and other sectors that contribute to increasing lifespans and extending quality of life in advanced age. ABBV holds the first spot in this fund, with a 3.88% weight, while LLY holds the second position with a 3.67% weight.
AMGN holds the third spot in this fund, with a 3.49% weight, while EW holds the sixth position with a 3.24% weight. AGNG has gained 6.7% over the past year and charges 50 bps in fees.