Like many sectors, the healthcare industry is poised for disruption from artificial intelligence (AI) technology, which may create an investment opportunity for the Fidelity Disruptive Medicine ETF (FMED).
Marred by regulatory scrutiny and rising costs, the healthcare sector overall has had its fair share of challenges in 2025. FMED, however, takes a different approach. It focuses on companies positioned to disrupt the industry with innovative solutions. In FMED, investors will see companies like Boston Scientific Corp (a top 10 constituent in the S&P 500 Health Care Index), Alynlam Pharma, and Argenx. To casual investors, they may not be as instantly recognizable as Eli Lilly or UnitedHealth. However, they represent companies with a strong foothold in healthcare technology that could be household names in the future.
FMED is actively managed. It adds exposure to robotic surgery, gene therapy, genomics, rare diseases, medical devices and equipment, immunotherapy, technology-based health care platforms, and consumer wellness. The active management allows autonomy for the fund’s portfolio managers to adjust the holdings as necessary to suit market conditions.
AI Investment Rising in Healthcare
As mentioned, FMED includes companies that are incorporating the use of AI to provide innovative solutions to healthcare. According to the World Economic Forum, the level of capital investment in the healthcare sector is rising. This further supports the investment case for both funds.
The World Economic Forum recently identified ongoing challenges in the sector via a report: The Future of AI-Enabled Health: Leading the Way. They estimate that 4.5 billion people currently lack access to essential healthcare services. Meanwhile, forecasts expect a shortage of 11 million healthcare workers by the year 2030. This supply deficit creates an opportunity for AI-focused delivery services to help fill that void.
“AI digital health solutions hold the potential to enhance efficiency, reduce costs and improve health outcomes globally,” the report said.
Given the challenges, further investment in AI is imperative. This is where a fund like FMED can capture these growth prospects in an active and dynamic ETF.
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