In the middle of March, a lot of investors saw their portfolios sicken thanks to the COVID-19 pandemic. As the economy continues the path to recovery, it makes sense to add some growth opportunities for 2021 and one way to shape up portfolios, both literally and figuratively, is via the Global X Health & Wellness Thematic ETF (BFIT).
BFIT seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Health & Wellness Thematic Index. The fund invests more than 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that provide products and services that facilitate physical wellness through active and healthy lifestyles.
BFIT gives investors:
- High Growth Potential: BFIT enables investors to access high growth potential through companies at the leading edge of a long-term, structural trend affecting multiple sectors of the global economy.
- Unconstrained Approach: BFIT’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, BFIT delivers access to dozens of companies with high exposure to the Health & Wellness theme.
Given social distancing measures, it might seem that companies that focus on health like gyms might take a hit. While that may be true, BFIT has still been able to eke out a gain of 3.63% according to Yahoo Finance numbers.
The chart alone shows BFIT’s nice stability ball bounce:
Despite gyms closing, health and wellness is still a prime concern, particularly as a preventative measure against the COVID-19 pandemic. Additionally, to understand its performance, you have to look at its top holdings.
One of its holdings is athletic clothing company Lululemon, which has skyrocketed since the pandemic. On March 16, the stock was trading at just around $140 and is now currently trading at close to $350 or a 250% return since the height of the pandemic sell-offs.
“Analysts have been quick to praise the company’s expanding business, which has gotten a boost from the pandemic,” a Barron’s article noted. “The shares slipped after its most recent earnings report, in early September, although the Street applauded the results and the shares have been on the rise in recent weeks.”
Another top-performing piece of its holdings is Chinese sports brand company Li Ning. Li Ning company recently saw an increase in sales despite the pandemic.
“Li Ning Company Limited registered a low-single-digit increase on a same-store sales year-on-year basis in the third quarter ended September 30, driven by high-thirties growth in e-commerce,” a SGB Media article noted.
For more news and information, visit the Thematic Investing Channel.