Tap into key trends with these healthcare ETFs

Article Excerpt

The underlying growth trends for healthcare remain strong as the global population grows older and emerging economies become wealthier. Meanwhile, new technologies and artificial intelligence (AI) will serve to boost the already-strong prospects of healthcare stocks by improving the management of patient diagnostics, administrative processes, and drug discoveries. We discuss this in more detail in the Supplement on page 100. Here are two ETFs that aim to benefit from the opportunities presented by top healthcare stocks. ISHARES US MEDICAL DEVICES ETF $59.15 (New York symbol IHI; TSINetwork ETF Rating: Aggressive; Market cap: $5.1 billion) tracks the Dow Jones U.S. Select Medical Equipment Index. Companies included in this index are manufacturers and distributors of medical devices such as MRI scanners, prosthetics, pacemakers, X-ray machines, and other non-disposable medical devices. The ETF currently holds 50 stocks, of which the top 10 contribute 72% of total assets. The top holdings are Abbott Laboratories (17.0%), Intuitive Surgical (14.8%), Stryker (10.0%), Boston Scientific (5.1%), GE Healthcare Technologies (4.7%), Becton Dickinson (4.5%),…