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These are 4 lucrative healthcare ETFs that can help you make a lot of money

Mart Poom
21. 5. 2023
4 min read

These are 4 lucrative healthcare ETFs that can help you make a lot of money

Healthcare is one of the most dynamic industries that is constantly shifting. ETFs offer diversified access to a number of companies benefiting from opportunities in this sector. Let's explore four that offer different focuses and strategies. All with a European domicile!

iShares Healthcare Innovation UCITS ETF $HEAL

Tracks the performance of the S&P Kensho New Economies Composite Index and is registered in Ireland. It focuses on companies that use technological innovation to solve problems in the healthcare industry. The fund was launched in July 2018.

Companies tracked include Illumina, a maker of DNA sequencing tools, Intuitive Surgical, a manufacturer of robotic surgical systems, Edwards Lifesciences, with a focus on cardiac technology, and Teladoc, a virtual healthcare provider.

The fund's performance in recent years has been a bit wild. Volatility over the past 5 years is around 30%, which is consistent with the high volatility of companies in the healthcare and technology sectors.

Lyxor MSCI Disruptive Technology ESG Filtered UCITS ETF $GDNA

Fund registered in France. It tracks the performance of the MSCI World Disruptive Technology 20% Issuer Capped Index, which includes companies across the globe that participate in disruptive technology. It focuses on companies providing solutions in areas such as genomics, robotics, energy, 3D printing, materials, bioengineering and others.

The fund aims to provide investors with exposure to companies working in disruptive technology areas. This is a dynamic sector that can offer exciting return potential, but also high price volatility.

The fund applies ESG filters to exclude companies that violate this policy. Currently, the fund has 169 active bonds from the healthcare and technology sectors around the world.

ESG stands for environmental, social and governance factors. These are sustainability criteria that investors can use to find companies that are responsible to the environment, their employees and the public.

-Environment:
Carbon reduction, sustainable practices, use of renewable energy, etc.

-Social:
Diversity & inclusion, fair wages and benefits, safe working conditions, employee training, etc.

-Governance:
Transparency, accountability, ethics, long-term growth.

With the ESG filter mentioned above, Lyxor ETF only includes in its portfolio companies that meet their criteria for a sustainable business model based on these environmental, social and governance factors.

In the past, the fund has delivered great results, for example, returning over 57% in 2019. On the other hand, high volatility must be taken into account, with the fund losing about 12% of its value in 2020.

HSBC MSCI World Health Care UCITS ETF $HMCW

The fund is called HSBC MSCI World Health Care UCITS ETF and is registered in France. It tracks the performance of the MSCI World Health Care Index and provides exposure to global healthcare leaders around the world.

The annual commission is 0.60%. The portfolio's largest holdings include companies such as Johnson & Johnson, UnitedHealth, Roche, Merck, Abbott Laboratories, Amgen, Pfizer and AstraZeneca. The portfolio includes142 companies from 23 countries, with about 2/3 of the holdings coming from the United States.

It grew by almost 30% in 2019. Volatility ranged between 15-20% with fluctuations during pandemics.

Xtrackers MSCI World Health Care UCITS ETF 1C $XHW5

This is a Luxembourg-registered fund called Xtrackers MSCI World Health Care UCITS ETF 1C.
It aims to provide investors with exposure to global companies active in the healthcare sector by replicating the MSCI World Health Care Index .

Current asset size is approximately $1,751 million. The annual commission is 0.25%.

The fund tracks 165 titles from around the world, with Johnson & Johnson, UnitedHealth, Roche, Merck, Novartis, Pfizer, Abbott Laboratories, AstraZeneca and Amgen holding the largest holdings.

Over the past 5 years, the fund has delivered a positive return of 100%, including a growth of almost 20% in 2019. Volatility has been around 15-25% again with larger swings during pandemics.

Index Performance. Source

Do you have any healthcare sector ETFs? Which is your favorite? And do you prefer innovative technologies or do you prefer quiet investments in established giants?

Disclaimer: This is by no means an investment recommendation. It is purely my summary and analysis based on data from the internet and other sources. Investing in financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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