Milliman, Inc. has launched two active exchange-traded funds that seek to meet the rising cost of U.S. healthcare.
The Milliman Healthcare Inflation Guard ETF and the Milliman Healthcare Inflation Plus ETF began trading this week on NYSE Arca. Both ETFs are advised by Milliman Financial Risk Management LLC (Milliman FRM).
- The Milliman Healthcare Inflation Guard ETF (MHIG) seeks to generate returns that are generally equivalent to the U.S. healthcare cost inflation rate over time, as measured by Milliman Health Trend Guidelines (HTGs).
- The Milliman Healthcare Inflation Plus ETF (MHIP) seeks to generate returns that over time exceed the U.S. healthcare cost inflation rate.
Milliman’s 2025 Retiree Health Cost Index estimates that the average 65-year-old couple retiring in 2025 will spend approximately $588,000 for medical costs in their retirement. At the same time, the median 65- to 74-year-old American has only $200,000 saved for retirement for all costs, not just healthcare.
According to the 2025 Milliman Medical Index (MMI), the cost of healthcare for a hypothetical family of four in a typical employer-sponsored health plan is now $35,119, up from $12,214 in 2005 at the launch of the MMI. This near tripling in cost represents a 6.1% average annual increase from 2005-2025. Total healthcare related spending constitutes 17.6% of U.S. GDP, according to the Centers for Medicare and Medicaid Services and healthcare is the third largest lifetime expenditure.
“With MHIG and MHIP, there are now ETFs that seek to meet the rising cost of U.S. healthcare, a key financial risk that impacts all Americans. We’ve been carefully working on these solutions for over three years, and we are honored to share what we’ve built with all Americans. The amount that the average American will spend on healthcare is staggering. It’s behind only housing and food as a lifetime cost. While financial planning accounts for healthcare costs, an investment approach dedicated to and modeled on this massive financial risk hasn’t been available, until today,” said Adam Schenck, CFA, Principal & Managing Director, Fund Services, Milliman FRM.