Janine E. Anthes
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 innovationwith 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.