Healthcare ETF: Companies That Help Humans Live Long & Prosper

healthcare etf

This ETF is probably helping keep one of your friends alive.

Okay, maybe the Exchange-Traded Fund isn’t directly giving them life, unless they are #living for healthcare sector ETFs. But the life of someone you know probably depends upon a medication, technology, or device made by one of the companies that is a top holding in this investment. And this isn’t an exaggeration with around 60 companies in this ETF. The reach is that broad.

It’s probably not news to you that your friend with allergies or your uncle with high cholesterol relies on a medication made by pharma giant Pfizer to get through the day. But you might be less aware that your co-worker has Type 1 Diabetes, and wears a Medtronic insulin pump (and that its name is Penelope the Purple Pancreas). Your sister-in-law who got reconstructive surgery after breast cancer might have implants made by Allergan. Your little sister got the HPV vaccine last year? That was made possible by Merck & Co. Inc. Medtronic also might have their medical devices in any friends and family with artificial discs, pacemakers, or screws, rods, and plates used to patch up fractures and other injuries.

healthcare etf

The companies represented in Live Long & Prosper have their paws on the pulse of our health-seeking population.

The A-Z of Live Long & Prosper: It’s more than just a Big Pharma ETF

Okay, over one third of the holdings in this investment are pharmaceuticals, so we aren’t trying to say Big Pharma doesn’t play a big role in this ETF. But biotech, healthcare equipment/supplies, and healthcare providers are well represented here as well.

The top holding in Live Long & Prosper is Johnson & Johnson. If you’re anything like us, you can’t read Johnson & Johnson without immediately thinking: “A Family Company.” Excellent branding aside, this company covers just about an A-Z of health related products. Acuvue contacts: J&J. Zyrtec: J&J. In fact, if you check out the incredibly comprehensive wikipedia page for Johnson & Johnson, you’ll find the only first letters not represented in the encyclopedic list of their products are K, W, X, and Y. From Visine to Nicoderm, and Monistat to Aveeno, they’ve got most of our ailments, and most of the alphabet, covered.

Other top holdings in this invest include Pfizer, Medtronic, Allergan, and Merck & Co. Inc., all mentioned in our ‘people you may know with medical devices’ section above.

Keeping it Local

All of the companies represented in Live Long & Prosper are based in the good old US of A. However, just because these companies are born and bred in the United States, doesn’t mean they don’t reach beyond our borders. There are around 60 companies in this ETF, and many are helping keep people happy and healthy all over the world.

Jonesing to dive deeper?

We call this investment Live Long & Prosper, because there’s nothing better than some solidly nerdy word play. But if you want to get all up in this investment’s business, you can always get more information at the fund website. Check out State Street Global Advisors’ Health Care Select Sector SPDR Fund for all the down and dirty details. Everything from the fund top holdings, to the industry allocations, as well as the historical performance, expense ratio, and so much more.

Want more future focused investments?

Clean & Green – Want to invest in a greener tomorrow for our planet? This might be the investment for you. #greeninvesting

Robots Rising – The companies found in this investment are leading the way in robotics and automation technologies. #thefutureisrobot

Water the World – This investment is overflowing with companies that provide the equipment and services that help conserve, purify, and transport fresh water. #drinkdeep







Disclaimers
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. StashInvest assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. StashInvest does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis StashInvest uses from third party sources is believed to be reliable, StashInvest does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. StashInvest does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become StashInvest Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.

All ETFs are subject to risk, including possible loss of principal. The Health Care Select Sector SPDR® Fund (symbol: XLVIV) seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Health Care Select Sector Index. The companies included in each Select Sector Index are selected on the basis of general industry classification from a universe of companies defined by the Standard & Poor's 500 Composite Stock® Index ("S&P 500®"). The ten Select Sector Indexes (each a "Select Sector Index") upon which the Select Sector SPDR Funds are based together comprise all of the companies in the S&P 500. Sector ETF products are subject to sector risk and non-diversification risk, which generally result in greater price fluctuations than the overall market. XLVIV bears a higher level of risk than more broadly diversified funds. Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole. Fund information reported as of February 21, 2017.