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Pursue ETFs that Target Specific Diseases
Janine E. Anthes
Published Online: September 16, 2008 - 1:14:32 PM (CDT)

Previously, there were only 19 health-related exchange-traded funds (ETFs). But, a new set of ETFs has surfaced, allowing investors to aim their dollars at a specific disease category, such as cancer, diabetes, asthma, obesity, etc. According to a recent BusinessWeek article, this new family of funds, HealthShares, was developed by Ferghana Wellspring in New York. ETFs are similar to index funds, but can be traded like stocks. These ETFs allow investors to participate in a portion of the market that feeds off growth and innovation—with a potential for great returns. As with some investments, these ETFs may be too risky to consider without the help of a professional advisor. Because each HealthShares index will contain shares of only 20 companies, any sign of a failed clinical trial in one of the companies could affect the entire index.



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