Why invest in Healthcare
Health care sector companies range from pharmaceutical and device makers to health care insurers and hospitals.The entire population of a nation is dependent on health care companies for its well being. Healthcare Sector is characterized by relatively safe and steady cash flows. Sector experiences constant advancements and breakthroughs due to heavy focus on R&D. With an aging populations the demand for healthcare grows. On the downside because it is an essential part of an economy the sector can be prone to government oversight and excessive regulations .
Key indicators to consider before investing
- Trends in demographics, healthcare coverage, insurance etc.
- R&D, technological advancement
Top 5 ETF’s by Market Capitalization
|Name of the Fund||Ticker Symbol /Total AUM*||Year of Inception||Expense Ratio|
|Healthcare Select Sector SPDR||XLV||12/16/1998||0.14%|
|iShares Nasdaq Biotechnology Index||IBB||02/05/2001||0.47%|
|SPDR S&P Biotech||XBI||01/31/2006||0.35%|
|iShares Dow Jones US Healthcare||IYH||06/12/2000||0.44%|