Healthcare and technology provide an intriguing contrast. Many healthcare stocks are traditionally known for their more defensive uses in portfolios. At the same time, biotech and healthcare technology stocks stand to gain immensely from innovation, whether driven by AI or other breakthroughs. A prime example is the active healthcare ETF, GDOC, which recently got a major boost from positive news surrounding its largest holding, Eli Lilly (LLY).
Key Takeaways:
- Positive news for LLY boosted the outlook for active healthcare ETF (GDOC ) this week.
- The fund has recently performed well and saw its underlying data produce a momentum shift.
- Active management and potential tailwinds — such as future interest rate cuts — could further bolster its outlook.
JPMorgan raised its price target for Eli Lilly (LLY) this week, boosting an already strong month-and-a-half run for the active healthcare ETF. GDOC has returned 11.8% over the last three months, according to ETF Database data. This follows a period of underperformance at the start of 2026. What’s more, the fund’s price has risen above its 50-day Simple Moving Average (SMA), an indicator of its healthy momentum.
What Active Health Care ETF GDOC Can Do
The Goldman Sachs Future Health Care Equity ETF (GDOC ) charges a 75 basis point fee for its approach. The strategy actively invests in equities of firms driving global innovation in healthcare. Using a fundamental research-driven approach, GDOC looks for companies developing new treatments and technology in areas like genomics, precision medicine, and digital healthcare. Its active remit includes the flexibility to use futures, forwards, and options to meet its goals.
GDOC will also see its fifth year of operation this Fall. All factors combined, the strategy is well-positioned for a strong second half. Should, for example, rates fall as the Strait of Hormuz reopens and the global economy improves, healthcare stocks also stand to benefit. This shift could bolster M&A activity, This shift could also spur M&A activity, providing an additional tailwind for the fund’s performance
See more: Income ETF GPIQ Crosses $5 Billion in AUM Ahead of Key Milestone
LLY’s positive news has given GDOC a lift, but what other stocks are driving its momentum? Johnson & Johnson (JNJ), its second-largest holding, has returned nearly 30% year to date. JNJ also just received approval from the FDA for a new cardiac catheter, the latest tool from its medical technology division. Looking ahead, GDOC stands to offer a strong thematic addition to growth-oriented portfolios.
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