Healthcare covers pharmaceuticals, biotechnology, medical devices, health insurance, and healthcare services. It is a defensive sector with relatively stable demand regardless of economic cycles.

Key Holdings: UnitedHealth, Eli Lilly, Johnson & Johnson, AbbVie

Drivers: Drug pipeline/approvals, aging demographics, GLP-1 revolution, ACA/Medicare policy

Characteristics: Defensive with steady dividends; biotech subsector adds growth/volatility