How To Invest In An Aging World With The 'Live Long & Prosper' ETF

There’s no question that modern technology and science has extended the average life expectancy of the human race. While more years spent with loved ones and longer, richer lives is certainly a good thing, an aging population comes with unprecedented healthcare needs. Healthcare is already more than a $3 trillion business in the U.S. alone, and as the massive Baby Boomer generation continues to age, the healthcare business will witness unprecedented demand.

Become A Part Of The Healthcare Boom

There are plenty of investors that are kicking themselves for not investing in the healthcare business 10 or 20 years ago. While it’s true that plenty of profits have been left on the table at this point, it’s certainly not too late to invest in an aging population.

If you’re looking for a way to invest in the biggest and brightest healthcare companies in the world, Stash’s “Live Long & Prosper” ETF, more commonly known as the Health Care SPDR XLV might be worth a look.

The ETF is nicknamed “Live Long & Prosper” because it includes shares of more than 50 of the world’s leading pharmaceutical, biotech, insurance, healthcare provider and medical device companies.

Which Companies Are Included?

Many of the companies included in “Live Long & Prosper” are household names in the healthcare business because we all use their products and services every day. Top holdings include Johnson & Johnson JNJ, which generates more than $70 billion in annual revenue from healthcare products we all use around the house, like Neutrogena, Band-Aids and Tylenol.

Another top holding in the fund is Pfizer Inc. PFE, the manufacturer of leading prescription drugs like Viagra and Lipitor.

One of the “Live Long & Prosper” holdings that has been a top performer in recent years is UnitedHealth Group Inc UNH, the largest health insurer in the U.S. Since President Obama was elected in November 2008, the U.S. health insurance business has boomed, and United’s stock is up an incredible 387.4 percent.

Other familiar holdings in the fund include Merck & Co., Inc. MRK, Gilead Sciences, Inc. GILD and Allergan plc Ordinary Shares AGN.

Returns

How good of an investment is “Live Long & Prosper”? Let’s just say that United hasn’t been the only stock in the fund that has surged in recent years. In fact, in the last five years, the fund has generated a 98.3 percent return, more than double the return of the S&P 500, according to Morningstar.

In addition, the fund’s expense ratio, the amount of money spent on fees and administrative costs, is a miniscule 0.14 percent.

Takeaway

The “Live Long & Prosper” fund is only one of the many “I Believe” investments that allow investors to avoid hundreds of dollars in trading fees and invest in a wide range of stocks they believe in all at once by buying just one single ETF.

Disclosure: the author holds no position in the stocks mentioned.