Pass on this ETF

Article Excerpt

JANUS LONG-TERM CARE ETF $23 (Nasdaq symbol OLD; TSINetwork ETF Rating: Aggressive; Market cap: $9.4 million) invests in companies that operate assistedliving and long-term-care facilities for the elderly and others. The bulk of the fund’s assets (76%) are held in U.S. companies, but it invests globally. France (7.7%), New Zealand (5.9%) and Canada (4.8%) each has a sizable portion of its assets. The ETF holds 43 stocks, although the top six comprise nearly 60% of its assets. By themselves, the top two—Welltower and Ventas—make up more than 40% and are high-quality, U.S.-based providers of healthcare facilities. Still, the fund’s overwhelming dependence on them erodes one of the prime benefits of ETFs—diversification. This fund was launched in June 2016, and has so far failed to attract any significant investor interest. The result in a small asset size of $9.4 million, with limited liquidity for investors. The ETF has also performed relatively poorly when compared with more-diversified health-care ETFs such as IXJ and XHS, (see at…