Four ETFs To Play An Aging Population

As the equity markets continue to remain volatile and are highly susceptible to overall investor sentiment, it is important to consider certain sectors which are able to prosper in times of challenging economic conditions and the biotechnology sector could be one. 

One of the primary drivers that biotechnology has appeal is the aging of the global baby boomer generation.  In fact, according to the Associated Press, in Japan, nearly a quarter of its total population is Japanese aged 65 and older and the Japanese government expects this group to climb to nearly 40 percent of the nation’s population by 2050.  A similar trend is emerging in the United States as the American Association of Retired Persons (AARP), expects nearly 70 million individuals to be Medicare beneficiaries over the next two decades as compared to 45.2 million in 2008.  Read more of this post


Medical Device ETFs Destined To Shine

Increased demand from emerging markets and domestic macro factors are expected to be major driving forces behind growth in the medical device and biotechnology sectors and the exchange traded funds (ETFs) that track them.

Emerging markets are expected to be at the forefront of economic growth for the next few years as many are rich in natural resources, which are expected to be in high demand in the near future, and most are much more nimble than their developed counterparties which enable them to grow at a more rapid pace.  Furthermore, many emerging nations were able to shun themselves from the global financial crisis due to lack of exposure to global credit markets and the natural propensity to save that is instilled in their consumers. Read more of this post

4 Biotech ETFs Influenced By Increased M&A

Over the past few weeks the biotechnology sector has witnessed a significant uptick in mergers and acquisitions as large cash-heavy biotech companies are looking to diversify and broaden their horizons. 

To put this activity in perspective, in a two-day span nearly $3.1 billion in biotech-related deals were announced and some suggest more activity is to come.  Big Pharma front runners such as Pfizer (PFE), Sanofi-Aventis (SNE), Amgen (AMGN) and Merck (MRK) are expected to find themselves in somewhat of a rut as expiring patents and lackluster pipelines are imminent.  In order to overcome this, Big Pharma is likely to look at smaller, more nimble companies which are focusing on specific treatments and specialties in the medical sector. 

Another force that is likely to increase M&A activity in the sector includes the ability to remain globally competitive and gain access to the ever-so-growing emerging market consumer, enabled  though the acquisition of the aforementioned group of acquisition worthy companies who are focusing on specifics like cancer treatment, gastrointestinal dysfunction and emotional disorders. Read more of this post

Emerging Markets To Drive Healthcare ETFs

As emerging markets continue to grow and affluence rises, the developing world is likely to be the driving force behind growth in the global health care sector paving the path to opportunity in the iShares S&P Global Healthcare Sector Index Fund (IXJ), the iShares Dow Jones US Pharmaceuticals Index Fund (IHE) and the Vanguard Health Care ETF (VHT).

A report released by UBS (UBS) indicates that developing nations are expected to account for $550 billion of annual drug sales per year by 2020, accounting for more than 70% of all drug sales growth and pushing China and Brazil ahead of France, England and Germany when it comes to market size.  Read more of this post