What are Exchange-Traded Funds in the Healthcare Sector?
Exchange-traded funds (ETFs) are investment vehicles that pool together financial assets. This basket of securities can include stocks, bonds, commodities, currencies, and more. Exchange-traded funds are similar to mutual funds, but unlike mutual funds, ETFs trade like stocks. Investors can buy and sell shares of ETFs during trading hours on the exchange. The diversity and convenience of ETFs have made them a popular choice among investors.
List of Exchange-Traded Funds in the Healthcare Sector
If you are looking to gain exposure to the healthcare sector, while benefiting from the advantages of exchange-traded funds, the list below will be a great starting point. Investors should conduct the necessary research to determine whether the ETFs are suitable for them. At a high level, make sure the fund’s investment strategy aligns with what you are looking for. Next, you should check a few things that all investors should verify in any fund they invest in, even outside the healthcare sector. These general points include a fund with low fees, high volume, stable management, and good performance relative to its benchmark.
Advanced Healthcare Funds
Several funds from the above-mentioned are considered “advanced.” They are deemed advanced because of their complexity, structure, and associated risks. You should be aware that ETFs and exchange-traded notes (ETNs) are not risk-free, especially if you implement advanced strategies such as leveraged or inverse funds. However, if you conduct thorough research and do your due diligence, you should be able to find the best fund that fits your specific needs. Feel free to contact your broker or consult a financial professional if you have any questions or concerns.
Where to Find Exchange-Traded Funds?
Below are several links to the websites of each ETF provider. You can analyze performance, portfolios, and any other data you need to make an informed decision.
ProShares ETFs
State Street Global Advisors
Vanguard ETFs
Invesco ETFs
iShares ETFs
First Trust ETFs
Sources:
Vanguard. “Buying and Selling Exchange-Traded Funds.”
Technofunc. “Healthcare Industry Sectors.”
U.S. Securities and Exchange Commission. “Investor Warning on Leveraged and Inverse Exchange-Traded Funds.”
Source: https://www.thebalancemoney.com/invest-in-the-healthcare-sector-with-etfs-1215182
Leave a Reply