The Vanguard Health Care ETF (NYSE:VHT) rose 5.5% in 2018, bucking the broader trend of weakness on the stock market. The ETF was down 1.99% in early afternoon trading on January 3.
U.S. stocks had suffered from another retreat during the same period of trading. The tech and financial sectors have been hard hit, which should spur investors to look for growth in other areas. Demographics are driving market growth in the healthcare sector, making it a viable pick even in the face of economic headwinds threatening the market at large.
Some of the top holdings on the Vanguard Health Care ETF include Johnson & Johnson, a stock that was hit hard following a report that revealed the company knew about traces of asbestos in its baby powder brands stretching decades from the 1970s to the early 2000s.
The other top holdings are Pfizer, the pharmaceutical giant based out of New York, Merck & Co., and rounding out the top 10 is CVS Health Corp.
Health-care services are slated to be one of the fastest growing industries in the United States once again in 2019. The US pharmaceutical market is also projected to grow to over $500 billion by the end of 2020.
Meanwhile, the financial and tech sectors are in danger of stagnation as we head into the next decade. This health-care ETF is an option for investors seeking growth in a volatile market.
