Healthcare ex-China 30
Thirty global healthcare names with under 10% China revenue exposure and no Chinese supply chain dependence above 20% of API sourcing.
Why it won
Healthcare investors have spent two years trying to size and dodge biosecurity-driven China decoupling risk. This index does it explicitly, screening for both end-market China exposure AND API supply-chain exposure, and produces a basket that captures the core healthcare thesis without the geopolitical overhang. Useful as a paired short of MCHI for the more aggressive sleeves.
The prompt
Global healthcare index excluding any company with more than 10% of revenue from China or more than 20% of API supply chain sourced in China. 30 names, sub-industry diversified, weighted by 3-year FCF growth.
Methodology
- Universe: developed-market healthcare names above 10bn USD market cap.
- China end-market screen: trailing 12m China revenue exposure must be below 10%.
- Supply chain screen: API sourcing from China must be disclosed and below 20% of materials.
- Sub-industry diversification: pharma 35%, medtech 25%, services 15%, biotech 15%, distribution 10%.
- Weight by 3-year FCF growth, capped at 6% per name, annual rebalance.
Backtest
Figures are illustrative for editorial purposes. Past performance does not guarantee future results.
Holdings
| Ticker | Name | Weight |
|---|---|---|
| NOVO-B.CO | Novo Nordisk | 6.0% |
| LLY | Eli Lilly and Company | 6.0% |
| JNJ | Johnson & Johnson | 5.0% |
| MRK | Merck & Co | 5.0% |
| ABBV | AbbVie | 5.0% |
| PFE | Pfizer | 4.0% |
| BMY | Bristol-Myers Squibb | 3.0% |
| ROG.SW | Roche Holding | 5.0% |
| NOVN.SW | Novartis | 5.0% |
| SAN.PA | Sanofi | 4.0% |
| AZN.L | AstraZeneca | 4.0% |
| GSK.L | GSK plc | 3.0% |
| ISRG | Intuitive Surgical | 4.0% |
| TMO | Thermo Fisher Scientific | 4.0% |
| DHR | Danaher Corporation | 4.0% |
| ABT | Abbott Laboratories | 4.0% |
| BSX | Boston Scientific | 3.0% |
| EW | Edwards Lifesciences | 3.0% |
| SYK | Stryker Corporation | 3.0% |
| ELV | Elevance Health | 3.0% |
| UNH | UnitedHealth Group | 3.0% |
| CI | The Cigna Group | 2.0% |
| HCA | HCA Healthcare | 2.0% |
| VRTX | Vertex Pharmaceuticals | 3.0% |
| REGN | Regeneron Pharmaceuticals | 2.0% |
| GILD | Gilead Sciences | 2.0% |
| BIIB | Biogen | 1.0% |
| MCK | McKesson Corporation | 2.0% |
| COR | Cencora | 1.0% |
| WST | West Pharmaceutical Services | 2.0% |
Risks
- GLP-1 cluster (Novo Nordisk, Lilly) is a meaningful concentration that drives a large share of recent alpha.
- Pharma pricing reform headlines remain the single largest single-day drawdown driver historically.
- China API supply-chain data is self-reported and reshoring claims are uneven across the universe.
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