Think Americans will keep getting fatter, or is fitness where it’s at? Will long-term care keep growing? Then put your money where your mouth is and invest in exchange-traded funds (ETFs) representing bets on health status and metrics.
As Business Insider reported, Janus Capital Group this week filed a preliminary prospectus document with the U.S. Securities and Exchange Commission with week for four new, health-related ETFs:
1. The Obesity ETF: “Seeks investment results that correspond generally to… an index which is designed to track the performance of companies globally that are positioned to profit from servicing the obese, including, but not limited to biotechnology firms (for obesity and obesity related disease), healthcare (for obesity and obesity related disease, including medical devices and kidney dialysis), and weight loss programs and supplements.”
2. The Organics ETF: “Seeks investment results that correspond generally to… an index which is designed to track the performance of companies globally that are positioned to profit from increasing demand for organic products, including, but not limited to, companies which service, produce, distribute, market or sell organic food, beverage, cosmetics, supplements, or packaging.”
3. The Long-Term Health ETF: “Seeks investment results that correspond generally to… an index which is designed to track the performance of companies globally that are positioned to profit from providing long-term care to the aging population, including, but not limited to, companies owning or operating senior living facilities, nursing services, specialty hospitals, and senior housing.”
4. The Health and Fitness ETF: “Seeks investment results that correspond generally to… an index which is designed to track the performance of companies globally that are positioned to profit from servicing those participating in health and fitness activities, including, but not limited to companies whose business is focused on fitness technology/equipment, sports apparel, nutrition, and fitness centers.”
At least 90 percent of the companies listed in each fund will have market capitalizations of at least $100 million, Denver-based Janus said. That means don’t expect to see a whole lot early-stage companies.
Business Insider said that ETFs often can be risky. “However, as we’ve noted before, the performance of the assets in an ETF has usually peaked by the time the index fund has been created,” the report said.
Ah, but healthcare is unlike any other industry. Doesn’t it seem like a no-brainer that medical devices, pharma and long-term care will continue to boom?
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Photo: Flickr user Sonja Pieper
