“So far, the fund has been off to a good start with a total return of 5.85%. Within the fund, 73.99% of holdings are concentrated in 10 companies. The largest holding is in Ventas Inc. (VTR) with a total weight of 21.55%. The second-largest holding is Welltower Inc. (HCN) at a weight of 20.49%. Investors looking for exposure to health care companies relating to the long-term care industry through a basket of health care REITs might want to take a look at this new fund,” according to Investopedia.
The sudden spike in interest for REIT ETFs may be due to the pending GICS sector elevation of REITs as the REITs category remains underweighted in many actively managed mutual funds.
REITs may continue to experience a short-term boost in the months ahead as the S&P Dow Jones Indices stated it would add an 11th sector to its Global Industry Classification Standard, creating a new Real Estate Sector from the Financial Sector. The changes to the S&P 500 index will be implemented after the close of business on September 16, 2016.
For more information on healthcare ETFs, visit our Healthcare category.