Medtech Sector Resilience Amid Geopolitical Challenges

Bellevue Asset Management AG provides a positive outlook for the medtech and services sector, emphasizing innovation's role in countering geopolitical instability. As 2025 unfolds, the sector remains buoyant, driven by increasing surgical volumes and product innovations. Despite early April's pressures from new US tariffs, the sector showcased its defensive strength, with the Bellevue Medtech & Services Fund yielding a 2.7% return, outperforming broader market indices.

Key medtech players like Abbott and Medtronic enhanced sector performance through better-than-expected first-quarter earnings. Innovations in robotic surgery and electrophysiology further strengthened the sector's market position. As the US grapples with healthcare policy changes under a new health secretary, medtech majors remain insulated.

Even amidst trade tariff talks, the sector's impact is minimal, thanks to strategic localization and protective international agreements. Valuation metrics suggest medtech continues to offer attractive investment potential, trading at a slight discount compared to historical premiums.