Thematic exchange-traded funds are consistently popping up among this year's crop of new ETFs. Janus Capital Group Inc JNS added to that group of rookie ETFs Thursday in significant fashion, introducing four ETFs targeting the aging, health and wellness and obesity trends.
FITS
The Health and Fitness ETF FITS follows the Solactive Health and Fitness Index. FITS is arguably a consumer discretionary ETF in disguise as that sector accounts for over 91 percent of the new ETF's weight.
FITS allocates 19.6 percent of its weight to Dow component Nike Inc NKE with Lululemon Athletica inc. LULU, Under Armour Inc UA and Herbalife Ltd. HLF also among the ETF's top 10 holdings.
OLD
The aptly-tickered Long-Term Care ETF OLD tracks the Solactive Long-Term Care Index. Interestingly, OLD is not as healthcare heavy as some investors might think the new ETF would be. OLD allocates about two-thirds of its weight to financial services stocks, many of which are healthcare real estate investment trusts (REITs) with about a third of the ETF's lineup allocated to pure-play healthcare names.
Ventas, Inc. VTR and Welltower Inc HCN combine for over 40 percent of OLD's weight.
“As medical and pharmaceutical advancements prolong life expectancy, the aging population is expected to create increased demand for the long-term care industry. In 2050, the population age 65 and over in the U.S. is expected to be 83.7 million, or almost double its estimated population of 43.1 million 2012. About one in four 65-year-olds will live past 90 and one out of 10 will live past 95,” according to ETF Trends.
ORG
The Organics ETF ORG tracks the Solactive Organics Index. Just as FITS is a pseudo discretionary ETF, ORG is essentially a consumer staples ETF, as that sector accounts for over 87 percent of the new fund's weight.
Not surprisingly, Whole Foods Market, Inc. WFM is the dominant name in ORG, accounting for almost 23 percent of the new fund's weight.
SLIM
The Obesity ETF SLIM follows the Solactive Obesity Index. SLIM is almost a pure healthcare fund with that sector representing more than 87 percent of the new ETF's lineup. SLIM is almost evenly split between U.S. and ex-US developed markets stocks. The new ETF is home to 42 stocks, but just two combine for almost 39 percent of SLIM's weight.
Each of the new Janus ETFs charges 0.5 percent per year, or $50 for each $10,000 invested.
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