Few exchange traded funds marry small caps and healthcare as well as the ERShares International Equity ETF (NYSEARCA: ERSX).
ERSX selects the most entrepreneurial, primarily Non-US Small Cap companies, that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF). ERShares’ ETF delivers strong performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics. Their geographic diversity enables them to harness global advantages through additional returns associated with currency fluctuations, strategic geographic allocations, comparative trade imbalances, and relative supply/demand strengths.
With its small cap emphasis, ERSX focuses on the growth side of the often defensive healthcare sector.
“Many healthcare stocks have exhibited robust earnings and share price growth — not only in the COVID 19-dominated year of 2020 but throughout the past decade — and many economists and analysts predict continued growth in the years to come,” reports Business Insider.
The Healthcare Sector Goes Well Beyond Covid
The broad healthcare sector was a strong outperformer as front line workers became the focus of attention amidst the Covid-19 pandemic. While small cap equities have been gaining as of late ERSX offers investors exposure to even more disruptive elements of healthcare.
“Each element of the health care sector can act like its own mini-sector, with varying degrees of volatility and performance depending on demographics, government regulation, reimbursement patterns, scientific and technological breakthroughs,” adds Business Insider.
Small caps tend to have more room to run or grow when compared to larger companies, especially in sectors like like biotechnology and pharmaceuticals where smaller companies can come out with breakout innovative medicines that can generate huge growth. These smaller companies are also potential acquisition targets for larger companies seeking to diversify their product lines.
For more on entrepreneurial strategies, visit our Entrepreneur ETF Channel.
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.