Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

With Health Issues Dominating Headlines, 2 ETFs For Illness And Wellness

By Investing.com (Tezcan Gecgil/Investing.com )ETFsAug 30, 2021 05:41AM ET
www.investing.com/analysis/with-health-issues-dominating-headlines-2-etfs-for-illness-and-wellness-200600357
With Health Issues Dominating Headlines, 2 ETFs For Illness And Wellness
By Investing.com (Tezcan Gecgil/Investing.com )   |  Aug 30, 2021 05:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

"The global health industry was worth $8.45 trillion in 2018 and global healthcare could reach over $10 trillion by 2022," according to PolicyAdvice a US insurance specialist. And the US leads global spending with the World Bank estimating that it accounts for 16.89% of US gross domestic product (GDP) and over $10,00 per capita.

The coronavirus has been headline news since early 2020 and it has highlighted the importance of the healthcare industry across the globe. On Aug. 23, the US Food and Drug Administration (FDA) approved the first vaccine against COVID-19 which was developed jointly by Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) and "will now be marketed as Comirnaty."

On the same day, the Dow Jones Health Care Index hit an all-time high and the NASDAQ Biotechnology Index is also hovering close to record highs. Year-to-date (YTD), the indices are up 18.2% and 11.9%, respectively.

The pandemic has meant that biopharma, medical technology, telehealth and insurance companies are high on investors' agenda. We regularly cover exchange-traded funds (ETFs) in the sector that could appeal to a range of buy-and-hold investors.

For instance, we've previously discussed:

  • ALPS Medical Breakthroughs ETF (NYSE:SBIO) - down 8.8% YTD (covered here);
  • ARK Genomic Revolution ETF (NYSE:ARKG) - down 8.9% YTD (covered here);
  • ETFMG Treatments, Testing and Advancements ETF (NYSE:GERM) - up 42.0% YTD (covered here);
  • Health Care Select Sector SPDR® Fund (NYSE:XLV) - up 18.6 % YTD (covered here);
  • iShares Biotechnology ETF (NASDAQ:IBB) - up 13.4% YTD (covered here);
  • iShares US Healthcare Providers ETF (NYSE:IHF) - up 13.6% YTD (covered here);
  • iShares US Medical Devices ETF (NYSE:IHI) - up 18.8% YTD (covered here);
  • SPDR® S&P Biotech ETF (NYSE:XBI) - down 6.2% YTD (covered here).

Today's article introduces two other funds that deserve further due diligence:

1. Fidelity MSCI Health Care Index ETF

  • Current Price: $67.27
  • 52-week range: $50.23 - $67.94
  • Dividend yield: 1.18%
  • Expense ratio: 0.08% per year

The Fidelity® MSCI Health Care Index ETF (NYSE:FHLC) invests in 475 stocks across the broad US health care sector. The fund started trading in October 2013.

FHLC Weekly
FHLC Weekly

FHLC tracks the MSCI USA IMI Healthcare 25/50 Index. The top 10 names make up about 40% of net assets of $2.8 billion. Large-caps comprise almost three quarters of the fund, followed by mid-caps (17.38%).

In terms of sectors, we first see healthcare equipment (26.34%). Next in line are pharmaceuticals (23.99%), healthcare providers and services (18.59%) and biotechnology (18.51%) and others.

Leading holdings include Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH), Pfizer (NYSE:PFE), Abbott Laboratories (NYSE:ABT),Thermo Fisher Scientific (NYSE:TMO) and AbbVie (NYSE:ABBV).

The fund returned 26% in the past year, and 16.5% so far in 2021. FHLC saw a record high on Aug. 23. Trailing P/E, P/B and P/S ratios stands at 27.92x, 5.20x and 2.32x, respectively.

Readers with a long-term investment horizon might consider buying this low-cost fund between $62 - $65. Many of the firms in FHLC are likely to deliver quarters of shareholder value thanks to high levels of health care spending.

2. iShares Genomics Immunology and Healthcare ETF

  • Current Price: $53.68
  • 52-week Range: $34.32 - $55.25
  • Dividend Yield: 0.16%
  • Expense Ratio: 0.47% per year

According to the National Genome Research Institute:

“An organism's complete set of DNA is called its genome… Genomics is the study of all of a person's genes (the genome)… Virtually every human ailment has some basis in our genes.”

Recent metrics highlight: “the global genomics market size was valued at $20.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 15.35% from 2021 to 2028.”

Therefore, we can expect Wall Street to pay increasing attention to companies in the sector. Our second fund, the iShares Genomics Immunology and Healthcare ETF (NYSE:IDNA), gives exposure to healthcare companies that mainly focus on genomics and immunology, or “the study of the immune system [which] protects us from infection through various lines of defence.”

IDNA Weekly
IDNA Weekly

IDNA, which has 48 holdings, tracks NYSE FactSet Global Genomics and Immuno Biopharma Index. The fund started trading in June 2019. The leading 10 names make up about 47% of net assets of $348 million.

Among the top names in the roster are Moderna (NASDAQ:MRNA) and BioNTech, which have become household names with their vaccines against Covid-19; genome editing group Intellia Therapeutics (NASDAQ:NTLA); and global healthcare giants Merck (NYSE:MRK) and Regeneron Pharmaceuticals (NASDAQ:REGN).

The fund returned 43.8% in the past 12 months and 16.9% YTD. IDNA hit a record high on Aug. 10. Trailing P/E and P/B ratios are 32.07x and 5.12x. Short-term profit-taking could push the ETF toward $50.

With Health Issues Dominating Headlines, 2 ETFs For Illness And Wellness
 

Related Articles

With Health Issues Dominating Headlines, 2 ETFs For Illness And Wellness

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
MK Masum
MK Masum Sep 18, 2021 4:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hi mem
Yasir Tariq
Yasir Tariq Aug 31, 2021 3:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
kon
richard canlione
richard canlione Aug 30, 2021 8:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
very good stuff
DHARMESH J LEUVA
DHARMESH J LEUVA Aug 30, 2021 8:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email