As the general populace continues to age, state governments are going to have to address this issue, which should open up opportunities for the Global X Aging Population ETF (AGNG).

“The U.S. population is aging. In a little more than a decade, people 65 and older will outnumber children,” a National Conference of State Legislatures (NCSL) article says, which featured a podcast discussing the aging population. “Those older adults face economic, social and other challenges including the need for an array of long-term services.”

“Policymakers in a number of states are considering comprehensive approaches to support older adults,” the article adds. “A few states have created what are termed master plans for aging that outline how the state can take on challenges in housing, transportation, health care, and other sectors.”

Accommodating an aging population will lead to innovations in healthcare, both in the technology itself as well as in the delivery of healthcare services. As such, AGNG provides investors with a growth-focused healthcare play that offers something different than the run-of-the-mill healthcare ETF.

A Growth ETF Opportunity

AGNG seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Aging Population Thematic Index. The fund invests more than 80% of its total assets in the securities of the underlying index.

The underlying index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the demographic trend of longer average life spans and the aging of the global population, including but not limited to companies involved in biotechnology, medical devices, pharmaceuticals, senior living facilities, and specialized healthcare services.

AGNG provides investors with:

  • High growth potential: AGNG enables investors to access high growth potential through companies at the leading edge of a long-term, structural demographic trend affecting multiple sectors of the global economy.
  • An unconstrained approach: AGNG’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
  • ETF efficiency: In a single trade, AGNG delivers access to dozens of companies with high exposure to the longevity theme.

Under the hood, the largest holding is Novo Nordisk at just under a 5% allocation. The company is focused on healthcare innovation, which speaks to the focus of AGNG’s growth component.

“Our focus is on the serious chronic diseases that affect hundreds of millions of people and are among the most urgent global health challenges,” the company website says. “By combining our innovation and commercial excellence, we draw upon insights from patients and partners to transform bold ideas into life-saving and preventive medicines.”

AGNG Chart

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