MDT makes up 13.8% of IHI and 1.7% of XHE.

Debbie Wang, a senior equity analyst at Morningstar, argues that medical technology stocks are stable long-term plays as companies have attractive products in their pipelines and experience relatively short corrections.

Abbot Laboratories (NYSE: ABT) is also expected to benefit from emerging market growth as half of sales come from developing countries, including India and China. Moreover, the company is spinning off its developed market businesses to focus on faster-growing economies.

“Abbott has an attractive business,” Wang said, “and it has a strong competitive advantage.”

ABT makes up 10.4% of IHI and 1.8% of XHE.

For more information on the healthcare sector, visit our healthcare category.

Max Chen contributed to this article.