Topic: How To Invest

Q: Hi, all. What do you think of iShares Global Healthcare ETF as an investment to profit from rising healthcare demand? Thanks.

Article Excerpt

A: Three main factors continue to drive demand for healthcare products and services: the rapid aging of the population in developed countries; the expansion of medical services in developing countries; and significant new developments in the field of medical technology and innovation. The iShares Global Healthcare ETF, $66.31, symbol IXJ on New York (Units outstanding: 31.8 million; Market cap: $2.1 billion; www.ishares.com/us), invests globally in healthcare companies. The fund tracks the S&P Global Healthcare Index. Companies in the portfolio include manufacturers and distributors of pharmaceutical and biotech products (64% of assets), but also makers of healthcare equipment (36%). The ETF invests globally, although the U.S. makes up 67.0% of the assets. Switzerland (10.5% of assets), Japan (6.1%), the U.K. (4.7%), and Germany (2.5%) also represent significant holdings. The fund holds 104 different stocks. Its top holdings are Johnson & Johnson (U.S.; 7.1%), United Health Group (U.S.; 4.6%), Roche (Switzerland; 4.4%), Novartis (Switzerland; 4.2%), Merck (U.S.; 3.8%), Pfizer (U.S.; 3.5%), Bristol Myers Squibb (U.S.; 2.7%),…

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