One of the most dependable sectors for capital growth has been health care, only outpaced by technology. Investors looking for options in this higher interest rate environment should consider snatching up health care equities right now. Rather than hunt for the right pick, we can look to grab a health care focused exchange-traded fund (ETF).
The iShares Global Healthcare ETF (TSX:XHC) seeks to provide long-term capital growth by replicating the performance of the S&P Global 1200 Health Care Canadian Dollar Hedged Index, net of expenses. It targets exposure to equities of issuers in the health care sector of the global economy. Shares of this health care ETF have climbed 5.2% month-over-month as of close on April 20. That has pushed the ETF into the black in the year-to-date period. The ETF has achieved an average annual return of 11% since its inception on April 12, 2011.
Some of the top holdings in this ETF include UnitedHealth Group, Johnson & Johnson, Merck & Co., and Pfizer. This is through its primary U.S. holding the iShares Global The Bank of Canada (BoC) announced that it would hold its benchmark interest rate at 4.5% on Wednesday, April 12. Central banks around the developed world have committed to aggressive rate tightening policies in response to soaring inflation rates. Indeed, BoC governor Tiff Macklem has stated that the central bank may not be finished with its tightening cycle.
Healthcare ETF (NYSE:IXJ).
