The Global X Health & Wellness Thematic ETF (NASDAQ: BFIT) isn’t an ordinary healthcare ETF and that’s alright because the Global X fund is higher by 29.37% over the past 90 days.
BFIT recently turned four years old and tracks the Indxx Global Health & Wellness Thematic Index. The fund “seeks to harness the effects of changing consumer lifestyles by investing in companies geared toward promoting physical activity and well-being,” according to Global X.
BFIT holds 60 stocks. Importantly, the fund is sector agnostic and is not a traditional healthcare ETF in disguise. About 10 industries are represented in the fund and on a percentage basis, more than half of BFIT’s holdings reside in the consumer discretionary sector.
“Americans are pursuing healthier eating habits during COVID-19. According to the International Food Information Council’s (IFIC) 2020 Food and Health Survey, 60% of Americans reported cooking at home more, and more than 20% reported eating healthier than usual,” according to a recent Global X report.
Betting on BFIT
What makes BFIT a compelling idea is that taps into younger demographics’ spending trends. Health and wellness are big business with millennials and Gen Z.
Additionally, BFIT could be a winning proposition after the coronavirus is vanquished because many Americans are adopting new eating habits and workout routines with restaurants and gyms closed.
“Forty-three percent of respondents indicated that they would adhere to stricter dietary guidelines in the coming year, up from 38% going into 2019. Many respondents also communicated a willingness to embrace meat and dairy alternatives,” according to Global X.
Bolstering the case for BFIT are long-term changes in how consumers emphasize health and wellness, which leads to important spending shifts.
“Consumers show more concern that their environment is healthy as well. The share of consumers focusing on environmental sustainability reached 39% entering 2020, up almost 10% year over year (YoY). And over 40% of shoppers noted that they prioritize environmentally-conscious farming practices in their purchasing decisions,” notes Global X.
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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.