Topic: How To Invest

Q: Hello, Pat. Would you please suggest your choice for an ETF that focuses on medical devices? Thanks.

Article Excerpt

A: There’s little doubt that the developing world’s aging population will continue to spend more on medical services for years to come. Medical device makers are well positioned to capture a share of that increased spending. Technological changes that continually spur new product development will also pay off. In turn, investors in the industry’s leading companies stand to benefit from growing demand. We still feel that investors will profit the most with a well-balanced portfolio of high-quality individual stocks, but ETFs can also play a role in a portfolio. And medical-device ETFs aim to provide a diversified and low-fee way for investors to participate in this expanding industry beyond one or two leading stocks. Here’s one of the biggest ETFs in this area: iShares U.S. Medical Devices ETF, $264.21, symbol IHI on New York (Units outstanding: 24.8 million; Market cap: $6.6 billion; www.blackrock.com/us), invests in U.S. firms that produce and distribute medical devices. The ETF aims to track the Dow Jones Medical Equipment…

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