Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares S&P Global Healthcare (NYSE: IXJ ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at iShares S&P Global Healthcare and see what CAPS investors are saying about the ETF right now.
iShares S&P Global Healthcare facts
|Total Assets||$513.6 million|
|Investment Approach||Seeks investment results that correspond to the S&P Global 1200 Healthcare Sector Index, which includes health-care providers, biotech companies, and manufacturers of medical supplies, advanced medical devices and pharmaceuticals.|
|1-Year / 3-Year / 5-Year Annual Returns||8.6% / 12.7% / 1.1%|
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight||Johnson & Johnson (NYSE: JNJ ) (8.1%)
Pfizer (NYSE: PFE ) (7.2%)
Novartis (NYSE: NVS ) (6.9%)
|Alternatives||iShares Nasdaq Biotechnology (Nasdaq: IBB )
Vanguard Health Care (NYSE: VHT )
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 97% of the 67 members who have rated iShares S&P Global Healthcare believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star jaschajabes, who is ranked in the top 10% of our community, and GKuhfeldt.
Having gotten on board a few years ago, jaschajabes succinctly summed up the opportunity: "[L]ife expectancy rises so [health care costs] do as well. I see profits for the long haul here."
iShares S&P Global Healthcare, in particular, sports an annual turnover ratio of just 6%. That's lower than that of other health ETFs like iShares Nasdaq Biotech (13%) and Vanguard Health Care (9%).
CAPS member GKuhfeldt expands on the outperform argument:
The tail end of the Baby Boomers will be reaching retirement in the next 10-15 years. That combined with the low price as a result of this economy means over the long term this ETF can only go up. People will always need health care. Additionally, this is a GLOBAL Healthcare ETF. That gives it a more diverse base to provide for a more defensive long position.
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