Note: This article is part of the ETFTrends.com Strategist Channel
By Clayton Fresk
In the ever-evolving ETF landscape, one of the newer developments is the increasing amount of thematic ETFs coming to market. While there are various niches that these ETFs cover, a couple of the newer entrants narrow in on the Fitness and Wellness theme. In the following, I will take a deeper comparative dive into these ETFs.
There is extensive market research regarding the changing and evolving dynamics around Fitness and Wellness. While it is definitely not a new phenomenon, there are many contributing factors to what is seemingly a renewed focus on health and wellness. Rather than bombarding readers with statistics, luckily the two issuers have laid out nice infographics touching on these factors and related research:
http://www.globalxfunds.com/exploring-the-health-wellness-economy/
https://www.janus.com/exchange-traded-funds/thematics/info-fits
This leads nicely into further analysis on the two ETFs that focus on the Fitness and Wellness Theme:
- BFIT – Global X Health and Wellness Thematic ETF
- FITS – The Health and Fitness ETF
While both ETFs have a Fitness and Wellness focus, there are differences in underlying index methodology that helps differentiate the two. Here is a breakdown of the GICS Sector Exposure in each:
Whereas FITS has a higher concentration in Discretionary, BFIT’s exposure is more spread between Discretionary and Staples. Breaking it down to the industry group level provides a bit more clarity: