6. Investing in Healthcare ETFs

In 2010, annual healthcare expenditures in the United States will reach $2.5 trillion, or more than 17% of the Gross Domestic Product (GDP). Nearly one of every five dollars we spend goes to health-related expenditures. That ratio was only 8% in 1980, just 30 years ago. With Baby Boomers now turning 60 at an unprecedented rate that will continue for another 15 years, that ratio is expected to grow to 25% by 2020. Despite this rapid growth, most investors have underweighted healthcare in their portfolios. There are 13 healthcare exchange traded funds (ETFs) currently trading in the United States with total invested assets of about $7 billion. This is an astonishingly small amount of ETF participation in an enormous ...

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