The BEST Healthcare ETFs for HIGH GROWTH! | Summary and Q&A

TL;DR

There are ETFs available for investors to take advantage of market drops, including broad healthcare ETFs like XLV and specialized biotech ETFs like XBI and IBB.

Key Insights

• 💐 ETFs like XLV, XBI, and IBB offer investors exposure to the healthcare and biotech sectors.
• 👋 Individual stock selection may yield better results than investing in biotech ETFs due to the significant variability between the best and worst performers.
• 🔬 Diversification and portfolio allocation are important strategies to mitigate risk when investing in biotech stocks.

Transcript

[Applause] now we have time for a couple of questions um alex asks is there an etf we can buy to take advantage of the drop in the market instead of trying to pick individual stocks that are down i mean i'm gonna guess they want a a uh biotech or healthcare etf rather than an overall a market etf yeah i mean obviously the the first one that comes t... Read More

Questions & Answers

Q: Are there ETFs available to invest in the market drop instead of picking individual stocks?

Yes, you can consider broad-based healthcare ETFs like XLV or the Vanguard S&P 500 index. If you prefer a focus on biotech, options like XBI and IBB exist.

Q: What is the difference between XBI and IBB?

XBI is an equal-weighted biotech ETF that includes smaller biotech stocks, while IBB has a higher concentration of larger biotech companies. The pricing and performance of these ETFs can vary based on the composition of their holdings.

Q: Why does the speaker not recommend investing in biotech ETFs?

The speaker believes that the spread between the best and worst biotechs is significant in the industry. By conducting research and selecting individual biotech companies, investors have the potential for better returns.

Q: How should investors approach investing in biotech stocks to reduce risk?

Diversification is key when investing in biotech stocks. Spreading investments across at least 10-15 biotech stocks can provide some level of diversification. Additionally, it is advisable to allocate a smaller portion of the portfolio to biotech stocks compared to other non-biotech stocks.

Summary & Key Takeaways

• The Vanguard S&P 500 index (BOO VO) is a broad-based healthcare ETF that provides exposure to the overall market.

• XLV is a healthcare ETF that includes biotech, drug makers, medical devices, and pharmacies, making it a good option for broad-based healthcare exposure.

• XBI and IBB are two popular biotech ETFs, with XBI including smaller biotech stocks and having an equal-weighted approach, while IBB has a higher concentration of larger biotech companies.

• The speaker suggests that investing in individual biotech stocks might be better due to the significant spread between the best and worst biotechs, but acknowledges the desire for a shortcut.

• Diversification is crucial when investing in biotech stocks, as they are risky and volatile. Spreading investments across 10-15 biotech stocks can offer some level of diversification and reduce risk.