Is DRUG a good ETF?
DRUG is the BetaShares Global Healthcare ETF - Currency Hedged from BetaShares. It tracks the Nasdaq Global ex-Australia Healthcare Hedged AUD Index. We classify it under Intl and Thematic. With about $172 million in assets it is a solidly established fund.
On a total-return basis, DRUG has delivered 4.15% a year over 5 years (ranked 128th of 188 ETFs we track), 5.72% a year over 3 years (ranked 169th of 226 ETFs we track), and 20.78% a year over 1 year (ranked 43rd of 308 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 14% of all ETFs we track.
The management fee of 0.57% is on the higher side. For comparison, similar ETFs average around 0.46%. If cost is your priority, IXJ (0.4%), CURE (0.45%), and HLTH (0.45%) cover similar ground for less. It pays a healthy 4% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 13.24%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.13 is weak — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Top-14% returns over 1 year (43rd of 308 ETFs we track).
- Pays a useful 4% income yield.
Things to watch
- Has lagged most peers over 3 years (169th of 226).
- Pricier than similar ETFs, which average around 0.46%.
- Cheaper alternatives exist: IXJ, CURE, and HLTH.
- Weak risk-adjusted returns (5-year Sharpe ratio 0.13).
- Highly concentrated single-theme bet — keep the position size small.
What DRUG's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.