The new healthcare exchange traded funds (ETFs) from Ferghana Wellspring should be available soon. The new ETFs will focus on small companies developing cutting edge treatments for specific health disorders are called Healthshares. Businessweek online writes that these ETFs create a new asset class – diseases.
The top limit on the market capitalizations will range from $10-20 billion, depending on the fund. While the new ETFs offer some creative possibility, Roger Nusbaum writes in Seeking Alpha that he is skeptical about investing in small or microcap stocks that are as specialized as these ETFs. He thinks their success depends on how the ETFs are constructed.
As with any investment, one should stress the financial aspect, not act on emotions.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.