As the world’s population grows, it’s also aging, which will transform the current healthcare system. This opens up opportunities for the Global X Aging Population ETF (AGNG).
Accommodating an aging population will lead to innovations in healthcare, 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 from the run-of-the-mill healthcare ETF.
“Elder and long-term care is rapidly becoming one of the most daunting healthcare challenges of our day,” a Forbes article said. “Between 2015 and 2030, the number of people in the world aged 60 years or over is expected to grow by , from just over 900 million to nearly 1.5 billion.”
As for AGNG, it 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 health care 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.
- 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.
A Rapidly Changing Healthcare System
While medical technology has allowed individuals to live longer lives, it brings its own set of healthcare challenges that the sector must meet head on. From healthcare facilities to new devices, AGNG is prepared to capture this exponential growth.
“Many countries are finding new cost effective approaches to elder and long term care that meet the needs of their growing population of elders while containing costs,” the Forbes article added. “Some are building age friendly cities and housing. Others are adapting traditional services and products to meet new consumer needs. Many are revisiting their policy agendas and reviewing their healthcare financing systems as well.”
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