ETF Expert

Until recently, if you wanted exposure to healthcare stocks, your choices may have been limited. You essentially had an opportunity to invest in the iShares Dow Jones HealthCare Index (IYH), the S&P HealthCare Index (XLV), or offshoots like the Pharmaceutical HOLDRs (PPH).

Now there are alternatives like the Dow Jones U.S. Medical Devices (IHI) or the iShares Dow Jones U.S. Healthcare Providers (IHF). Even more alternatives started trading last week, affectionately dubbed “Healthshares.”

Here are the offerings:

• Metabolic-Endocrine Disorders Index (HHM)
• Autoimmune-Inflammation Index (HHA)
• Cancer Index (HHK)
• Cardiology Index (HRD)
• Composite Index (HHQ)
• GI/Gender Health Index (HHU)
• Respiratory/Pulmonary Index (HHR)
• Neuroscience Index (HHN)
• Opthalmology Index (HHZ)

At first glance, it may seem desirable to target companies that work on products for heart health or better breathing. Yet, the .75% expense ratio makes the slice-n-dice health-shares a little bit on the pricey side.

Whatever happened to .25% SPDRS? Didn’t we like 0.4% international offerings? When did ETFs suddenly start pushing the limit of the basic mutual fund world… moving closer and closer to 1% or more for the privilege of the diversification?

Stay tuned!

Disclosure statement: Some of Pacific Park’s investment clients may hold positions in any of the investments mentioned above.