Physician's Money Digest, March 2007, Volume 14, Issue 3
Previously, there were only 19 health-relatedexchange-traded funds (ETFs). But,a new set of ETFs has surfaced, allowinginvestors to aim their dollars at a specificdisease category, such as cancer, diabetes,asthma, obesity, etc. According to a recentarticle, this new family offunds, HealthShares, was developed byFerghana Wellspring in New York. ETFs aresimilar to index funds, but can be tradedlike stocks. These ETFs allow investors toparticipate in a portion of the market thatfeeds off growth and innovation—with apotential for great returns. As with someinvestments, these ETFs may be too riskyto consider without the help of a professionaladvisor. Because each HealthSharesindex will contain shares of only 20 companies,any sign of a failed clinical trial inone of the companies could affect theentire index.