Attempting to invest in the health-care sector in Canada is a difficult task, due primarily to the fact that the country’s universal health-care system makes it impossible to invest directly in hospitals; insurance companies are limited to providing plans covering portions of health-care over and above what is covered by Medicare, making investing in such less an investment in health-care than in home, auto, casualty, or other insurance-related sectors.
Perhaps the only pharmaceutical company which is worth checking out is Valeant Pharmaceuticals Intl. Inc. (TSX:VRX)(NYSE:VRX), a firm which has rebounded somewhat of late, despite losing approximately 90% of its value from its peak a few years ago. The gamete of large multinational health-care firms in Canada is thus miniscule, forcing investors to look outside of Canada.
Finding options in this space thus usually involves picking global companies from the U.S. or Europe to add to one’s portfolio, given the scale and breadth of options from which to choose. A number of exchange traded funds (ETFs) are available to Canadian investors on the TSX with exposure to blue-chip firms.
For investors looking for dividend income along with growth, the ETF which is probably the best option for such investors is the Harvest Healthcare Leaders Income ETF (TSX:HHL).
The ETF has a monthly distribution, yielding nearly 9% annually, with a portfolio of 20 of the biggest healthcare companies in the world in the fund’s portfolio. Investors looking for serious long-term exposure in this space ought to consider this ETF first.
Invest wisely, my friends.
