The portfolio is filled with defensive firms, which tend to produce relatively stable and reliable cash flows.
This ETF offers much more of a mid-cap tilt than other health-care ETFs. As such, we believe it provides purer exposure to the U.S. health-care sector than do some of its peers, whose holdings include large-cap pharmaceutical companies with meaningful overseas businesses.
Given litigation worries in the health-care sector, an ETF is an effective vehicle for diversifying away much of the company-specific risk. Read more