It stands to reason that investing in healthcare is less volatile than investing in other sectors. After all, people get sick in both good times and bad. Healthcare stocks have had a rough few years. So why invest in them? First, I'm a contrarian. I like what's down. Second, healthcare is a booming industry, accounting for 18% of gross domestic product (GDP) in 2021, up from 12% in 1991. Third, the sector adds stability to any portfolio. On this last point, consider the Health Care Select SPDR (
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ICICI Prudential healthcare ETF aims to provide returns that closely correspond to the returns provided by the Nifty Healthcare Index in the same proportions, subject to tracking errors.
The fund will provide investors a choice to take exposure to multiple facets of healthcare through this product, the fund house said in a statement without disclosing what will be the target of the fund.
The company said the new ETF is timely given the rising health problems, lifestyle choices and outbreak of the pandemic and the sector has a strong potential to grow steadily in the coming decade.