healthshares

What healthshares does

HealthShares Inc. is a privately held investment company, founded in 2006 and headquartered in New York, that operates a family of exchange-traded funds (ETFs) listed on the New York Stock Exchange. The company is a subsidiary of XShares Group LLC and earns management fees on assets invested across a portfolio of 19 specialized ETFs organized by therapeutic verticals in healthcare, life sciences, and biotechnology — including funds targeting Cancer, Cardiology, Neuroscience, Infectious Disease, Ophthalmology, Orthopedic Repair, and Enabling Technologies, among others, plus a Composite ETF offering broad healthcare exposure across 80 stocks.

Each ETF tracks a proprietary underlying index of 22-25 stocks (80 for the Composite), constructed using the patent-pending 'Vertical Investing' methodology developed by parent XShares Group LLC, which categorizes healthcare companies by therapeutic category. Index administration is performed by Standard & Poor's; portfolio management is handled by BNY Investment Advisors as sub-adviser; Bank of New York serves as custodian and administrator; and ALPS Distributors, Inc. is the primary distributor. The funds are passively managed and employ a market-cap screening range of $100 million to $15 billion for inclusion.

The business model is fee-based: domestic ETFs carry a 0.75% net annual operating expense ratio, international ETFs 0.95%, plus 12b-1 distribution fees up to 0.25% of average daily net assets. Distribution targets institutional investors purchasing 100,000-share Creation Units at NAV and retail investors trading shares through brokerage accounts on the NYSE. Underlying constituent companies span disease diagnosis, drug development, treatments, therapies, delivery systems, and enabling technologies. Management team includes William J. Kridel (Chairman), David W. Jaffin (CFO), and Anthony F. Dudzinski (COO).

Name

healthshares

Legal name

HealthShares Inc.

Website

https://healthsharesinc.com

Company type

Private

Founded year

2006

Operating status

Operating

Short description

HealthShares Inc. operates a family of NYSE-listed exchange-traded funds organized by therapeutic verticals in healthcare, life sciences, and biotechnology, serving institutional and retail investors seeking targeted sector exposure through a proprietary Vertical Investing methodology.

Ownership category

akta.pro rank

Product category

Healthcare Sector ETFs

NAICS

Portfolio Management and Investment Advice (523940), Open-End Investment Funds (525910)

SIC

Investment Advice (6282)

akta.pro primary industry

Sector & Industry Equity ETFs (FSAAAFAC)

Keywords

• Healthcare sector ETFs
• Therapeutic vertical investing
• Biotechnology index funds
• Sector-specific exchange funds
• Healthcare investment products

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. ETF Management Fees: HealthShares generates revenue through management fees charged on ETF assets under management. Domestic ETFs charge 0.75% net annual operating expenses; International ETFs charge 0.95%. Additional revenue comes from 12b-1 distribution fees up to 0.25% of average daily net assets.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

HealthShares operates a family of sector-specific exchange-traded funds (ETFs) listed on the NYSE that track proprietary indexes of publicly-listed healthcare, life sciences, and biotechnology companies. Each of the 19 ETFs is organized around a specific therapeutic vertical (e.g., cardiology, cancer, infectious disease, ophthalmology, neuroscience) and holds 22–25 stocks (80 for the Composite fund). The funds employ passive index-tracking management using the patent-pending "Vertical Investing" methodology developed by XShares Group LLC, with Standard & Poor's acting as Index Administrator.

Product overview

HealthShares offers a series of 19 specialized Exchange Traded Funds (ETFs) organized by therapeutic verticals in healthcare, life sciences, and biotechnology sectors. The fund family includes: Autoimmune-Inflammation (HHA), Cancer (HHK), Cardio Devices (HHE), Cardiology (HRD), Composite (HHQ - broad market cap exposure), Dermatology and Wound Care (HRW), Diagnostics (HHD), Emerging Cancer (HHJ), Enabling Technologies (HHV), European Drugs (HRJ), European Medical Products and Devices (HHT), GI/Gender Health (HHU), Infectious Disease (HHG), Metabolic-Endocrine Disorders (HHM), Neuroscience (HHN), Ophthalmology (HHZ), Orthopedic Repair (HHP), Patient Care Services (HHB), and Respiratory/Pulmonary (HHR). Each ETF tracks a proprietary index of 22-25 stocks (except Composite which has 80 stocks) and employs a passive management approach using the patent-pending 'Vertical Investing' methodology developed by XShares Group LLC. The funds are listed on the NYSE and distributed by ALPS Distributors, Inc.

Differentiator

Problem solved

Functional benefit

Products and services

• HealthShares Autoimmune-Inflammation ETF (HHA) Tracks the HealthShares Autoimmune-Inflammation Index, investing in companies engaged in Arthritis, Multiple Sclerosis and Lupus treatments. Designed for investors seeking targeted exposure to autoimmune and inflammatory disease therapeutics.
• HealthShares Cancer ETF (HHK) Tracks the HealthShares Cancer Index, investing in mid to large cap cancer companies. Designed for investors seeking broad cancer-therapeutics exposure.
• HealthShares Cardio Devices ETF (HHE) Tracks the HealthShares Cardio Devices Index, investing in companies manufacturing Stents, Valves and Pacemakers. Designed for investors targeting cardiovascular medical device exposure.
• HealthShares Cardiology ETF (HRD) Tracks the HealthShares Cardiology Index, investing in companies focused on Coronary Artery Disease, Congestive Heart Failure, and Hypertension. Designed for investors seeking therapeutic cardiology exposure.
• HealthShares Composite ETF (HHQ) Tracks the HealthShares Composite Index featuring the Top 80 Stocks by Market Cap across all HealthShares Indexes, providing broad healthcare sector exposure. Designed for investors seeking diversified healthcare exposure across all therapeutic verticals.
• HealthShares Dermatology and Wound Care ETF (HRW) Tracks the HealthShares Dermatology and Wound Care Index, investing in companies engaged in Skin Cancer, Burn Repair, Acne and Aging Skin treatments. Designed for investors seeking dermatology therapeutic exposure.
• HealthShares Diagnostics ETF (HHD) Tracks the HealthShares Diagnostics Index, investing in companies focused on Analysis, Identification and Visualization of Disease. Designed for investors seeking exposure to disease diagnostics.
• HealthShares Emerging Cancer ETF (HHJ) Tracks the HealthShares Emerging Cancer Index, investing in small cap cancer companies. Designed for investors seeking small-cap cancer-therapeutics exposure.
• HealthShares Enabling Technologies ETF (HHV) Tracks the HealthShares Enabling Technologies Index, investing in companies in Genomics, Proteomics and Robotics. Designed for investors targeting healthcare enabling technologies.
• HealthShares European Drugs ETF (HRJ) Tracks the HealthShares European Drugs Index, investing in drug companies headquartered in Europe. Designed for investors seeking European pharmaceutical exposure.
• HealthShares European Medical Products and Devices ETF (HHT) Tracks the HealthShares European Medical Products and Devices Index, investing in medical products and devices companies in Europe. Designed for investors seeking European medical device exposure.
• HealthShares GI/Gender Health ETF (HHU) Tracks the HealthShares GI/Gender Health Index, investing in companies focused on Heartburn, Acid Reflux and Sexual Dysfunction. Designed for investors seeking gastrointestinal and gender-health therapeutic exposure.
• HealthShares Infectious Disease ETF (HHG) Tracks the HealthShares Infectious Disease Index, investing in companies developing Antibacterial, Antifungal and Antiviral Treatments. Designed for investors targeting infectious disease therapeutics.
• HealthShares Metabolic-Endocrine Disorders ETF (HHM) Tracks the HealthShares Metabolic-Endocrine Disorders Index, investing in companies focused on Diabetes, Obesity, Kidney and Liver Disorders. Designed for investors targeting metabolic and endocrine therapeutics.
• HealthShares Neuroscience ETF (HHN) Tracks the HealthShares Neuroscience Index, investing in companies engaged in Alzheimer's, Depression and Parkinson's treatments. Designed for investors seeking neuroscience therapeutic exposure.
• HealthShares Ophthalmology ETF (HHZ) Tracks the HealthShares Ophthalmology Index, investing in companies focused on Glaucoma, Diabetic Macular Edema and Macular Degeneration. Designed for investors seeking ophthalmology therapeutic exposure.
• HealthShares Orthopedic Repair ETF (HHP) Tracks the HealthShares Orthopedic Repair Index, investing in companies engaged in manufacturing, distribution and commercialization of medical devices for bone, cartilage, tendon, muscle, ligament treatment. Designed for investors seeking orthopedic medical device exposure.
• HealthShares Patient Care Services ETF (HHB) Tracks the HealthShares Patient Care Services Index, investing in companies engaged in Assisted Living Centers, Nursing Homes and Hospitals. Designed for investors targeting healthcare services and facilities exposure.
• HealthShares Respiratory/Pulmonary ETF (HHR) Tracks the HealthShares Respiratory/Pulmonary Index, investing in companies focused on Asthma, Emphysema, Tuberculosis and Chronic Obstructive Pulmonary Disease. Designed for investors seeking respiratory and pulmonary therapeutic exposure.

Quantifiable outcome

• Seeks correlation of 0.95 or better between Fund performance and Underlying Index

Named customers2 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Seven partnerships are on record, tiered core and minor.

• ALPS Distributors, Inc.coreChannel Partner/ Reseller/ DistributorALPS Distributors, Inc. serves as the distributor for all HealthShares ETFs. This is the primary distribution relationship for the funds.
• XShares Group LLCcoreTechnology or IntegrationParent company of XShares Advisors LLC. Developed the proprietary 'Vertical Investing' methodology used to create and maintain the underlying indexes.
• Standard & Poor'scoreTechnology or IntegrationServes as the Index Administrator for all Underlying Indexes, employing the Index Methodology to determine composition of each index.
• BNY Investment AdvisorscoreImplementation/ SI/ Consulting PartnerActs as investment sub-adviser responsible for day-to-day management of each Fund's portfolio, reconfiguring portfolios to reflect Underlying Index changes.
• Bank of New YorkcoreImplementation/ SI/ Consulting PartnerServes as administrator and custodian for each HealthShares fund.
• XShares Advisors LLCcoreImplementation/ SI/ Consulting PartnerInvestment advisor to each HealthShares Fund.
• XShares Securities LLCminorChannel Partner/ Reseller/ DistributorAssists in the marketing of the HealthShares Funds.

Scale indicators4 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• iShares (BlackRock): iShares is the world's largest ETF sponsor and operates broad-market and sector equity ETFs including healthcare/biotech-focused funds (e.g., iShares Biotechnology ETF). It is comparable to HealthShares as an ETF issuer using an indexing methodology, but with vastly greater scale, broader mandate, and lower fee structure.
• SPDR ETFs (State Street Global Advisors): SPDR operates a large family of sector and industry ETFs that partner with S&P Dow Jones Indices, including healthcare and biotech ETFs (e.g., SPDR S&P Biotech ETF, XBI). It is comparable to HealthShares in using S&P-style sector index methodology and operating sector-focused ETFs.
• Vanguard ETFs: Vanguard operates low-cost sector ETFs including healthcare/biotech funds. It is comparable to HealthShares as an ETF issuer using passive index-based methodology, but with a much broader product family, lower fees, and massive scale.

Direct peers

• Invesco (PowerShares): Invesco (formerly PowerShares) operates a large suite of thematic and sector ETFs, including several healthcare verticals (e.g., Invesco S&P SmallCap Health Care ETF). It is a direct peer to HealthShares as a sponsor of sector-specialized ETFs, with a more established distribution and broader AUM base.
• First Trust: First Trust sponsors industry- and vertical-themed ETFs (e.g., First Trust NYSE Arca Biotech ETF, First Trust Health Care AlphaDEX ETF). It is directly comparable to HealthShares in offering specialized healthcare/biotech sector ETFs that target specific industry sub-segments.
• Global X ETFs: Global X is known for thematic and specialized ETFs, including several healthcare and biotech-themed funds. It is comparable to HealthShares as a sponsor of narrowly themed ETFs targeting specific market sub-segments rather than broad-market exposure.
• ALPS ETFs: ALPS Distributors (HealthShares' distributor) also operates its own ETF lineup through ALPS ETF Trust, including medical and healthcare-themed ETFs (e.g., ALPS Medical Breakthrough ETF, SBIO). It is a direct peer in healthcare-specific thematic ETFs and shares distribution infrastructure with HealthShares.
• ProShares: ProShares operates a broad suite of ETFs including healthcare/biotech sector funds and thematic specialty ETFs. It is comparable to HealthShares as a sponsor of specialty sector ETFs, though ProShares is more known for leveraged/inverse products.
• VanEck: VanEck sponsors healthcare/biotech and other thematic ETFs (e.g., VanEck Vectors Biotech ETF, BBH). It is directly comparable to HealthShares as a sponsor of specialized healthcare-focused ETFs using a custom index methodology.
• Direxion: Direxion operates sector and industry ETFs, including healthcare/biotech sector funds. It is comparable to HealthShares as a niche ETF sponsor targeting specific industry sub-segments rather than broad-market exposure.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about healthshares