Saturday, November 10, 2012

5-Star ETFs Poised to Pop: iShares S&P Global Healthcare

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares S&P Global Healthcare (NYSE: IXJ  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at iShares S&P Global Healthcare and see what CAPS investors are saying about the ETF right now.

iShares S&P Global Healthcare facts

Inception November 2001
Total Assets $513.6 million
Investment Approach Seeks investment results that correspond to the S&P Global 1200 Healthcare Sector Index, which includes health-care providers, biotech companies, and manufacturers of medical supplies, advanced medical devices and pharmaceuticals.
Expense Ratio 0.48%
1-Year / 3-Year / 5-Year Annual Returns 8.6% / 12.7% / 1.1%
Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight Johnson & Johnson (NYSE: JNJ  ) (8.1%)
Pfizer (NYSE: PFE  ) (7.2%)
Novartis (NYSE: NVS  ) (6.9%)
Dividend Yield 2.2%
Alternatives iShares Nasdaq Biotechnology (Nasdaq: IBB  )
Vanguard Health Care (NYSE: VHT  )

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 97% of the 67 members who have rated iShares S&P Global Healthcare believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star jaschajabes, who is ranked in the top 10% of our community, and GKuhfeldt.

Having gotten on board a few years ago, jaschajabes succinctly summed up the opportunity: "[L]ife expectancy rises so [health care costs] do as well. I see profits for the long haul here."

iShares S&P Global Healthcare, in particular, sports an annual turnover ratio of just 6%. That's lower than that of other health ETFs like iShares Nasdaq Biotech (13%) and Vanguard Health Care (9%).

CAPS member GKuhfeldt expands on the outperform argument:

The tail end of the Baby Boomers will be reaching retirement in the next 10-15 years. That combined with the low price as a result of this economy means over the long term this ETF can only go up. People will always need health care. Additionally, this is a GLOBAL Healthcare ETF. That gives it a more diverse base to provide for a more defensive long position.

What do you think about iShares S&P Global Healthcare, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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