It has been a nervous year for markets. Tariff threats keep resurfacing, the headlines swing from rally to sell-off and back again, and investors are left guessing at the Federal Reserve’s next move. In times like these, the temptation to head for the sidelines is understandable.

But for those who would rather stay invested than try to time the market, the better question is where to ride out the storm. Healthcare has long been one of the answers. People don’t stop filling prescriptions or scheduling surgeries because the market had a bad week, and that steady demand gives the sector a natural resilience in uncertain times.

Healthcare did have a rough start to the year. Drug pricing threats and the prospect of pharmaceutical tariffs weighed on sentiment, leaving the MSCI World Health Care Index down 2.72% year-to-date.1 That cloud is now lifting. By April, the White House had reached most-favoured-nation pricing agreements with seventeen major pharmaceutical companies—including Eli Lilly, Novo Nordisk, Merck, and Pfizer—easing the drug-pricing uncertainty that had weighed on the sector.2 So, with the policy noise fading, let’s look at three reasons the sector is worth holding through the volatility.

Weight-Loss Pills Are Bringing in Entirely New Patients

GLP-1 medications have already transformed the treatment of obesity and type-2 diabetes, but for many patients they came with one major drawback: they had to be injected. That barrier is now falling. Eli Lilly announced FDA approval in April for Foundayo, the first GLP-1 weight-loss pill with no food or water restrictions3.

The pill isn’t simply taking share from injectables, it’s drawing in patients who had stayed away altogether. As more of those patients enter the market, Morgan Stanley projected the global obesity and type-2 diabetes treatment market could reach $190 billion by 2035.4

Robotic Surgery Has a Long Runway Ahead

Robotic surgery may sound like a mature industry, but globally, adoption is still in its early days. Intuitive Surgical reported placing 232 of its da Vinci 5 systems in the first quarter of 2026, up from 147 in the same quarter last year.5

Competition is picking up as well. While Intuitive builds AI capabilities into its platform, Medtronic announced FDA clearance for its rival Hugo system for urological procedures in December 2025.6 More companies competing for the same operating rooms is rarely a bad sign and it usually means the market is big enough, and growing fast enough, to support them.

Dealmaking Signals Confidence in the Sector

Perhaps the strongest vote of confidence comes from within the industry itself. According to JPMorgan’s Q1 2026 BioPharma and MedTech Deal Report, healthcare M&A reached $42 billion across 56 deals in the first quarter of 2026.7

The deals themselves tell a story. Eli Lilly announced an agreement to acquire Centessa Pharmaceuticals for up to $7.8 billion, expanding into sleep and neurological disorders,8 while Merck announced an agreement to acquire Terns Pharmaceuticals for roughly $6.7 billion to strengthen its hematology pipeline.9 When strategic buyers pay premiums like these, it suggests they see more value in the sector than current share prices reflect.

Why LIFE? One Ticker for Global Healthcare

Steady demand, growing treatment markets, and buyers willing to pay up, together they make a strong case for healthcare in a volatile market. For investors who want that exposure without betting on any single company, the Evolve Global Healthcare Enhanced Yield Fund (LIFE) offers a simple way to get it. LIFE holds the 20 largest global healthcare companies across pharmaceuticals, medical devices, and diagnostics. The same companies driving the GLP-1 expansion, the rise of robotic surgery, and the current wave of dealmaking.

LIFE also applies an active covered call overlay designed to generate tax-efficient monthly income. In an unsettled market, that regular income can make it easier to stay the course while the sector’s longer-term story plays out.

 

For more information on LIFE ETF, visit the fund page at https://evolveetfs.com/product/life/

 

 

 

 

Sources

  1. Bloomberg, as at May 29, 2026. MSCI World Health Care Index and MSCI World Index, year-to-date total returns.
  2. https://www.whitehouse.gov/fact-sheets/2026/04/fact-sheet-president-donald-j-trump-announces-deal-with-regeneron-to-bring-most-favored-nation-pricing-to-american-patients/ (Apr 23, 2026)
  3. https://investor.lilly.com/news-releases/news-release-details/fda-approves-lillys-foundayotm-orforglipron-only-glp-1-pill (Apr 1, 2026)
  4. https://www.morganstanley.com/insights/articles/glp1-weight-loss-market-may-double-190-billion-2035 (Apr 22, 2026)
  5. https://www.sec.gov/Archives/edgar/data/0001035267/000103526726000029/q126ex-991earningsrelease.htm (Apr 21, 2026)
  6. https://news.medtronic.com/2025-12-03-Medtronic-announces-FDA-clearance-of-Hugo-TM-robotic-assisted-surgery-system-for-urologic-surgical-procedures (Dec 3, 2025)
  7. https://www.jpmorgan.com/insights/markets-and-economy/outlook/biopharma-medtech-deal-reports (Apr 16, 2026)
  8. https://investor.lilly.com/news-releases/news-release-details/lilly-acquire-centessa-pharmaceuticals-advance-treatments-sleep (Mar 31, 2026)
  9. https://www.merck.com/news/merck-to-acquire-terns-pharmaceuticals-inc-expanding-its-hematology-pipeline-with-tern-701-a-novel-candidate-for-chronic-myeloid-leukemia-cml/ (Mar 25, 2026)

 

 

DISCLAIMERS

 

Published June 17, 2026.

Evolve Funds Group Inc. is the investment fund manager and portfolio manager. Evolve Global Healthcare Enhanced Yield Fund (“LIFE”) is offered by Evolve Funds Group Inc. and distributed through authorized dealers.

The information contained herein is for informational purposes only and is not intended to be investment or tax advice. You should not act or rely on the information contained herein without seeking the advice of an appropriate professional advisor. The information contained herein is intended for informational purposes as a summary only, does not constitute an offer to sell any securities or a legally binding obligation, it is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses found on the Evolve Funds Group Inc website at https://evolveetfs.com/

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Tags Evolve Funds  global healthcare  glp-1  healthcare etf  LIFE ETF  obesity  Robotic surgery  weight loss drugs