HIGHLIGHTS
Financial markets in March 2026 were dominated by the minute by minute (or tweet by tweet) developments in the Iran war. Volatility spiked, leaving the S&P500 down 5.1% for the month and 4.6% for the year, excluding dividends. The Wellvest H&W Index suffered a worse fate, with a 9.1% decrease for the month of March, pulling the YTD to negative 8.2%, excluding dividends. This outcome is not surprising given the sensitivity of health and wellness products, food, beverages, supplements, etc., to inflationary pressures.
price of Occidental Petroleum (OXY), as a proxy for oil. The health and wellness sector is
dominated by consumer goods, all of which are dependent on oil for transportation and
production across the supply chain. While no one knows what the final outcome of the war will
be, we do know that inflation pressures are now in the supply chain pipeline. It’s highly likely
that margins will be squeezed and consumer prices in the sector will rise in the coming days.
STRETCHED THIN
For the last many months, the downward drift in the WVC Health and Wellness Index has felt relentless. March extended this persistent downtrend. Perhaps more telling than the headlin numbers is the breadth of the selloff: 38 of 48 constituents finished March in the red, and looking out over a full year, 36 of 49 names remain in negative territory. From our perspective, the selling seems broad and largely indiscriminate, cutting across fitness, food & beverage, supplements, and pet nutrition alike. Hard to judge if this is a sector-wide de-risking rather than isolated company-specific issues; our bet is on the former. Valuations appear increasingly stretched to the downside, with the index now trading at a median forward EV/EBITDA of just 9.9x and a median forward P/E of 15.1x — both at a discount to the broader market. With forward multiples compressing below trailing figures, the health & wellness space may be a great value. The wildcard is the medium to long term impact on inflation and margins due to the war which could offset any current valuation discounts. Stay tuned!
H&W INDEX WINNERS and LOSERS – YTD as of March 31, 2026
- Top Five Winners
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- Top Five Losers
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Data sources: Pitchbook
Copyright: Wellvest Capital 2026