Sector Concentration Risk: The fund is concentrated in the healthcare sector, making it highly susceptible to adverse economic, regulatory, and political developments specific to this industry, potentially leading to greater volatility than a more diversified fund.

Regulatory and Policy Risk: The healthcare sector is heavily regulated. Changes in government policies, healthcare reform legislation, drug pricing regulations, or reimbursement policies can significantly impact the profitability and growth prospects of the companies held by the fund.

Drug Pricing Pressure Risk: There is ongoing political and public pressure to control healthcare costs, particularly drug prices. Future legislative or market actions to curb drug spending could negatively affect the revenues and profits of pharmaceutical and biotechnology companies within the fund.