Since the 1970s, at least 30 new infectious diseases have emerged for which no effective treatment exists*

‍And yet, thanks to AI, automation and computing, we are on the verge of a bio-revolution which can help develop treatments for many health challenges around the world.

Investing in healthcare lets your capital work for the better of our planet, whilst also potentially making financial returns.

In this article, we will give you 4 benefits and ways of investing in healthcare.

Quick Summary

1. Healthcare is a growing industry driven by ageing populations, longer life expectancy, and technology advancements.

2. Companies do a wide range of activities; biotechnology, medical devices, insurance etc.

3. Investing in Healthcare ETFs can reduce your exposure to any one company or sub-sector of healthcare

4. You can track impact of your healthcare investments with relevant UN SDGs such as SDG 3: Good Health and Well-being

What is Healthcare Investing?

Healthcare investing involves investing in companies that provide products and services related to healthcare, including biotechnology, pharmaceuticals, and medical devices. 

The healthcare industry is a rapidly growing sector, driven by an ageing population, increased life expectancy, and technological advancements. By investing in healthcare, investors can take advantage of the growth potential of the industry while contributing to social and environmental goals.

It’s important to keep in mind that investing in individual healthcare stocks does carry risks. That’s because the healthcare industry is heavily regulated, and new drug approvals, clinical trials, and patent expirations can have significant impacts. 

For this reason, some investors prefer to invest in healthcare through Exchange-Traded Funds (ETFs), which offer a more diversified and lower-risk approach to healthcare investing.

Healthcare ETFs

Healthcare ETFs are investment funds that trade on stock exchanges like individual stocks, but represent a basket of healthcare stocks. 

ETFs are popular among investors because they typically offer low fees and diversification. By investing in a basket of healthcare stocks, investors can reduce their exposure to any one company or sub-sector of healthcare. 

This can help to mitigate the risks associated with investing in individual healthcare stocks, while still allowing investors to benefit from the potential growth of the healthcare industry.

Healthcare ETFs typically provide exposure to companies that:

✔️Operate in healthcare innovation

✔️Will be transformed by advancements in genetics and biotechnology

✔️Develop medical equipment or drugs

✔️Offer medical insurance

✔️Provide healthcare services

Best Healthcare ETFs for Impact Investing

In recent years, impact investing has gained popularity as a way to align investments with social and environmental goals. 

Impact investing refers to the practice of investing in companies that have a positive social or environmental impact, in addition to generating financial returns

Several healthcare ETFs prioritize impact investing, and investors can select ETFs that focus on areas such as reducing healthcare disparities, improving access to healthcare, or developing innovative treatments.

By investing in these ETFs, you can align healthcare investments with your values and contribute to a healthier and more sustainable future.

Healthcare and the UN SDGs

The United Nations Sustainable Development Goals (SDGs) are a set of 17 goals that aim to create a sustainable future for all. 

GOODFOLIO investing platform allows you to track your investments revenue alignment with SDGs. It’s one of the ways you can track your impact, as well as compare the impact of ETFs before you invest in them.

Here are some SDGs that align with healthcare:

SDG 3: Good Health and Well-being
SDG 6: Affordable and Clean Energy
SDG 12: Responsible Consumption and Production

GOODFOLIO Healthcare ETFs 

Healthcare ETFs can offer investors the benefits of diversification, lower fees, and the opportunity to invest better for the planet.

By investing in healthcare, investors can promote health and well-being while potentially making financial returns.

GOODFOLIO is an investing platform designed for the conscious investor. Funds go through a screening process and are categorised by sustainability themes including Water ETFs.

And that’s just the tip of the iceberg, we also offer:

1. Fast sign up - typically onboard in less than 10 minutes‍

2. Themes - funds are categorised by sustainability themes

3. Screened ETFs - to meet our transparency and sustainability information standards

4. Impact reporting - up to date reports including UN SDG revenue alignment

5. Cutting edge tools -  ETF comparison tools based on impact, risk and returns

6. Sustainable ISA - create a new ISA or transfer your existing one with our help

7. Great customer support - we are always here to help!

Join the future of investing and start your free GOODFOLIO account today!

As with all investing, your capital is at risk.

Source: OECD