Healthcare Business

The Top Healthy Living ETFs of 2019

Eating a nutritious and well-balanced diet, exercising regularly and abstaining from bad habits like smoking — while by no means a guarantee — greatly increase one’s odds of living a long and healthy life. With these trends gaining ever more traction within the United States, they provide ample investment opportunity.

The United States might be known around the world for excess and gluttony, but at the same time a growing portion of the population is devoted to the fitness and healthy lifestyles overall. Sure, McDonald’s might be a staple of many American’s diets, but now more than ever Americans are health conscious and may go for a salad rather than a Big Mac.

Although this part of the population is small, comparatively speaking, more American adults are becoming active and eating healthier. With that said, this makes for a growing market with huge upside potential. Given the rise of Whole Foods and other natural and organic stores for food and supplements, there are now many angles that can be considered, let alone the aspects just targeting better health and lifestyle adjustments.

With the disparity in the population, there is definitely some risk involved with investing in individual fitness companies, companies selling natural foods, service companies focused on healthier living or weight management, or even health care providers. There is good news though.

To mitigate this risk and concern about picking the winners or the losers within these industries, ETFs offer a sampling and exposure to this market without an all-or-none risk in any single company’s stock. As the saying goes: “There’s an ETF for that strategy.” ETF Database has collected much of the information about these ETFs, among others, and made it easily accessible for those looking to get into the game. And investors can use a number of exchange-traded funds to invest in the future of a healthier America.

Global X Health & Wellness Thematic ETF (NASDAQ: BFIT) has been around since May 2016, and it aims to track the Indxx Global Health & Wellness Thematic Index. This fund seeks to harness the effects of changing consumer lifestyles by investing in companies geared toward promoting physical activity and well-being. It was last seen to have $28.3 million in assets under management. Its overall expense ratio is 0.50%, and it has traded up 24% with 2019 about to end. This ETF has a total of 57 holdings. The top 10 holdings include a mix of foreign and domestic companies:

  1. DexCom (5.01%)
  2. JD Sports Fashion (4.46%)
  3. ANTA Sports Products (3.93%)
  4. Lululemon Athletica (3.76%)
  5. Li Ning (3.53%)
  6. Adidas (3.49%)
  7. Puma (3.49%)
  8. Nike (3.25%)
  9. VF (3.05%)
  10. Danone (2.92%)

The Obesity ETF (NASDAQ: SLIM) has been around since June 2016 and aims to track the Solactive Obesity Index. This fund targets companies that could benefit as they fight the global obesity epidemic. Such companies could include biotechnology, pharmaceutical, health care and medical device companies focused on obesity and obesity-related diseases such as diabetes, high blood pressure and cholesterol, heart disease, stroke and sleep apnea. It has $11.5 million in assets under management. Its overall expense ratio is 0.35%, and it has traded up 19% so far in 2019. This fund has a total of 41 holdings. The top 10 holdings include a few sizable U.S. biotechs:

  1. Novo Nordisk (19.47%)
  2. ResMed (10.29%)
  3. DexCom (8.96%)
  4. Fresenius Medical Care (7.07%)
  5. DaVita (5.18%)
  6. Herbalife (4.89%)
  7. Fisher & Paykel Healthcare (4.88%)
  8. Insulet 4.74%)
  9. Abiomed (3.90%)
  10. Tandem Diabetes Care (3.82%)

Global X Longevity Thematic ETF (NASDAQ: LNGR) has been around since May 2016, and it aims to track the Indxx Global Longevity Thematic Index. The fund targets companies positioned to serve the world’s growing senior population through exposure to health care, pharmaceuticals, senior living facilities and other sectors that contribute to increasing lifespans and extending quality of life in advanced age. It has $26.2 million in assets under management, its overall expense ratio is 0.50%, and it was last seen trading up over 26% so far in 2019. This fund has a total of 99 holdings. Its top 10 holdings include mostly domestic major biopharma firms:

  1. Chugai Pharmaceutical (3.99%)
  2. Bristol-Myers Squibb (3.82%)
  3. Medtronic (3.56%)
  4. Biogen (3.50%)
  5. Amgen (3.47%)
  6. Edwards Lifesciences (3.45%)
  7. Boston Scientific (3.27%)
  8. Vertex Pharmaceuticals (3.21%)
  9. Novo Nordisk (3.15%)
  10. AbbVie (3.00%)

Goldman Sachs Motif Human Evolution ETF (NYSEARCA: GDNA) has been around since March 2019. It tracks the Motif Human Evolution Index, targeting companies creating customized health solutions in the next medical revolution. It had $10.0 million in assets under management. Its overall expense ratio is 0.50%, and it has traded up about 17% year to date. Out of the fund’s 121 total holdings, the top 10 holdings are mostly domestic firms:

  1. Intuitive Surgical (4.53%)
  2. Medtronic (4.11%)
  3. Abbott Laboratories (3.46%)
  4. Boston Scientific (2.94%)
  5. Roche (2.68%)
  6. Johnson & Johnson (2.65%)
  7. AstraZeneca (2.61%)
  8. Fresenius Medical Care (2.46%)
  9. Sanofi (2.16%)
  10. Align Technology (2.14%)

The Organics ETF (NASDAQ: ORG) has been around since June 2016, and it aims to track the Solactive Organics Index. This ETF seeks exposure to companies globally that can capitalize on the increasing desire for naturally derived food and personal care items, including companies that service, produce, distribute, market or sell organic food, beverages, cosmetics, supplements or packaging. It was last seen to have $7.2 million in assets under management. Its overall expense ratio is 0.35%, and it has traded down 3% so far in 2019. This fund has a total of 24 holdings. The top 10 holdings include a range of domestic and foreign firms:

  1. Chr. Hansen (20.22%)
  2. Sprouts Farmers Market (11.42%)
  3. Hain Capital Celestial (10.26%)
  4. Ariake Japan (6.55%)
  5. L’Occitane International (4.94%)
  6. United Natural Foods (4.64%)
  7. Blackmores (4.12%)
  8. John B. Sanfilippo & Son (3.89%)
  9. Rock Field (3.86%)
  10. Treatt (3.69%)