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Toronto-based TD Asset Management Inc. has launched a new ETF focused on the health-care sector, the firm said in a release on Wednesday.

The TD Global Healthcare Leaders Index ETF tracks the Solactive Global Healthcare Leaders Index, which reflects the performance of global large- and mid-cap health-care issuers. The fund invests in companies involved in health-care technology, pharmaceuticals, equipment and life sciences tools, and service providers.

“The sector is already one of the largest in the S&P 500 index and continues to expand globally,” said Rob Vanderhooft, chief investment officer, TDAM, and senior vice-president, TD Bank Group, in the release.

“This new ETF offers a convenient and low-cost way to participate in this growth, while investing in companies dedicated to supporting progress in health care and our collective well-being over the long term.”

To create a more diversified portfolio, the fund has a cap of 2% on individual securities so as to avoid overweighting mega-cap pharmaceutical companies.

The ETF has a management fee of 0.35% and is listed on the Toronto Stock Exchange.