Boomers Could Help Future of Health and Biotechnology ETFs

September 13, 2007 at 2:56 pm by Tom Lydon

Biotech_etfs Investing in biotechnology and health-related exchange traded funds (ETFs) would seem to make sense as the baby boomer generation ages. An increase in older citizens creates more demand for health care services with the best technology and medications available. In fact, the number of available health care-related ETFs has doubled to 41 in 2007, according to Trang Ho for Investor’s Business Daily.

However if you decide to add this sector to your portfolio, be careful which biotech and health-related ETFs you choose, as all are not created equal. For example, the iShares Nasdaq Biotechnology (IBB) that follows the Nasdaq Biotechnology Index has had a much more volatile performance than the general market. IBB is a general biotech ETF that invests at least 90% of its assets in biotech-related American Depository Receipts (ADRs). Currently, IBB is up 5.4% year-to-date.

If you look at the iShares Dow Jones U.S. Medical Devices (IHI) it’s been soaring up, up and away compared to the market, as Gary Gordon for ETF Expert notices. IHI follows the Dow Jones U.S. Select Medical Equipment index. It invests in medical equipment companies that make prosthetics, pacemakers, X-ray machines among other devices. Currently, IHI is up 15.6% year-to-date.

Biotech_etfs_chart

Tags | ,

Subscribe

Enter your e-mail address below to sign up for our free e-mail newsletter, the Daily Market Update. We will never share your e-mail address with third parties.

1 Comments For This Post

  1. Dave Says:

    Great info, I never heard of IHI before this article.

Leave a Reply

    • Paul: looking for a vietnam etf
    • Tom Lydon: Hi Gordon, Absolutely. Commodities experienced a big correction this summer! Many of these funds have...
    • gordon smith: Even In These Markets, You Can Still Find ETF Movers and Shakers—where are we today…most...
    • Andy: You have to be careful when choosing your asset allocation. Many people are under the impression that you get...
    • Andy: There is a useful tool at http://www.assetcorrelation.co m that lets you check the degree of correlation...

Recent Podcast

Tom Lydon Talks About iMoney, ETFs and Why You Should Own Them

 
 Tom Lydon on FT Press - August 11, 2008: Play Now | Play in Popup | Download