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Personal health is arguably our greatest asset. Good health provides us hope, opens doors to pursue our passions, and allows us to enjoy life to the fullest. Around the world, healthcare has largely been adopted as a human right, with governments, individuals, and corporations investing ever increasing amounts into providing healthcare.
For investors, Healthcare is a highly attractive sector deserving of a core long-term position in many portfolios. The sector benefits from many attractive attributes, including strong growth, inelastic demand, and low sensitivity to the economic cycle. Combined, these factors have allowed the sector to post earnings growth and returns ahead of the broader equity markets over the long-term - a trend we expect will continue in the years ahead.
Building a healthy portfolio
With this in mind, TD Asset Management Inc. (TDAM) recently created an article titled Building a Healthy Portfolio that discusses how the Healthcare sector benefits from strong secular tailwinds and how these tailwinds are anticipated to remain in place for many years.
The article also takes a deeper dive into the current trends to help illustrate how the sector's strong growth has, and continues to be, mainly driven by two secular drivers - a growing and aging global population (demographics), as well as a continuous stream of innovations.
Now, if there was only an investment solution to help take advantage of these trends…
An ETF with broad Healthcare exposure
At TDAM we are committed to providing one of the broadest offerings of investment solutions in Canada and the essential building blocks needed to help you construct a well-thought-out portfolio. That’s why we’ve recently launched the TD Global Healthcare Leaders Index ETF (TDOC).
The primary goal of TDOC is to provide investors with broad based global exposure to Healthcare, in order to capitalize on the secular trends driving growth in the sector - without the risk of investing in a narrow niche or industry group. TDOC provides exposure to nearly 140 mid, large and mega-cap names, capturing both mature industry leaders and healthcare innovators. This includes Pharmaceuticals, Biotechnology, Life Science Tools, Healthcare Equipment, Healthcare Services, and Health Technology.
What separates TDOC from the rest?
Not all ETFs are created equal. One unique aspect of TDOC is that it caps the weight of individual securities at 2% and excess weight is redistributed to other index components on a pro-rata basis at each rebalancing interval. This tilts exposure away from slower growing mega-cap pharmaceutical companies, with the weight redistributed to faster growing biotechnology, health equipment, life science tools, and healthcare technology.
TDOC is designed to help meet the evolving needs of investors and include strategies that we believe are truly distinctive in the marketplace. Our offering provides greater choice and opportunity for investors in the fast-growing Canadian ETF market.
For more information about TDOC, please visit TD.com/ETFs.
The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance.
Certain statements in this document may contain forward-looking statements (“FLS”) that are predictive in nature and may include words such as “expects”, “anticipates”, “intends”, “believes”, “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest and foreign exchange rates, equity and capital markets, the general business environment, assuming no changes to tax or other laws or government regulation or catastrophic events. Expectations and projections about future events are inherently subject to risks and uncertainties, which may be unforeseeable. Such expectations and projections may be incorrect in the future. FLS are not guarantees of future performance. Actual events could differ materially from those expressed or implied in any FLS. A number of important factors including those factors set out above can contribute to these digressions. You should avoid placing any reliance on FLS.
The TD Global Healthcare Leaders Index ETF ("TD ETF") is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Solactive Global Healthcare Leaders Index (CA NTR) ("Index") and/or any trade mark(s) associated with the Index or the price of the Index at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards TDAM, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the TD ETF. Neither publication of the Index by Solactive AG nor the licensing of the Index or any trade mark(s) associated with the Index for the purpose of use in connection with the TD ETF constitutes a recommendation by Solactive AG to invest capital in said TD ETF nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this TD ETF.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto- Dominion Bank.
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