The Wall Street Journal reported on how to reap the benefits of investing in healthcare funds, commenting that the bulk of the uncertainty surrounding the sector has been removed by the presidential election’s affirmation of the Affordable Care Act.
As quoted in the market news:
Health-care mutual funds have gained 19.7% on average in the 12 months through Nov. 15, and are up 12.6% each year over the past three years, according to investment-research firm Morningstar. By comparison, the Standard & Poor’s 500-stock index has gained 10.1% in the 12 months through Nov. 15.
Investors have plowed $4 billion into health and biotechnology funds, including exchange-traded funds, this year through the end of October, according to Lipper. That already is more than double the nearly $1.9 billion the funds took in last year.
The sector should benefit as baby boomers age, says Emerson Bell, a fee-only financial adviser at Halvorson-Boyd & Bell in Dallas who oversees about $50 million in assets. Primary-care physicians will do well under the health-care act, though specialists may suffer a bit, he says. But plenty of entrepreneurs will figure out how to make money under the new rules, he says.