The health-care sector is one of the most attractive opportunities for investors on the hunt for growth. Rising populations and aging demographics in the developed world will lead to ballooning health care expenditures in the coming years and decades.
Deloitte recently projected that global health care expenditures will reach above $10 trillion by 2022.
Investors looking to dive into this lucrative market should consider targeting the BMO Equal Weight US Health Care ETF (TSX:ZHU). A report in the journal Health Affairs projects that the health-care market will experience annual growth of 5.5% from 2018 to 2027 in the United States.
This ETF gives investors the chance to own some of the top US health-care companies.
Some of the top holdings in this ETF include Idexx Laboratories, a multinational engaged in animal veterinary, livestock and poultry, water testing and dairy markets.
Illumina, a San Diego-based company that develops, manufactures and markets integrated systems for the analysis of genetic variation and biological function, is another top 5 holding. The fund aims to replicate the performance of the Solactive Equal Weight U.S. Health Care Index.
The ETF was up 3.03% in early afternoon trading on June 25. The fund launched in February, which does not give us a broad performance overview. However, with the growth trajectory of this sector investors should consider getting in early. The only drawback is its hefty MER, which sits at 0.39%.
