The pharmaceutical industry in general is always performing well. People tend to live longer and they are needing more and more medicine to sustain a good and long life.
Obama has made health care attainable for many American citizens which means a larger customer base for these US pharma companies. But there is a ceiling here.
The cost of health care already is extremely high. So the big question remains whether Americans want to keep paying more and more insurance premiums year-in year-out. I don’t think much growth is to be expected here.
But a collapse of the market will not happen either. A big advantage of this pharma ETF is that it does not have much to worry about the state of the economy. Describing the potential of this market would be something in the line of “a slightly rising market with a low downturn risk”.
SPDR S&P Pharmaceuticals ETF
This pharma ETF is all about US medicine. This SPDR Pharma ETF is tracking the S&P Pharmaceuticals Select Industry index. 43 American pharmaceutical companies are included in this pharma ETF.
Most pharmaceutical companies included here are weighed similarly with a share of 2% to 3% each.
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SPDR S&P Pharmaceuticals ETF info:
ETF provider: SPDR (State Street Global Advisers)
Exchange: Nyse Arca