Top Investment Picks: Four ETFs Worth Considering in 2018
Explore four top ETFs for 2018, including healthcare, water infrastructure, and biotech sectors. These ETFs offer diversification, low costs, and growth potential, making them ideal for both new and seasoned investors seeking smart investment opportunities amidst market volatility.
Top Investment Choices: Four Prominent ETFs for 2018
Many investors are turning to exchange-traded funds (ETFs) for their investment portfolios. ETFs offer greater liquidity and lower costs compared to mutual funds, making them attractive options for both novice and experienced investors.
Similar to stocks, ETFs experience frequent trading and volatility. With approximately 19,000 ETFs available nationwide, selecting the right ones can be challenging. Here are four leading ETFs to consider in 2018.
Vanguard Health Care ETF
As the second-largest ETF provider in the US, Vanguard’s offerings are highly regarded.
Vanguard Health Care (VHC) offers a strategic investment in a booming sector, with decades of growth prospects. Its consistent profitability is driven by rising medical expenses and ongoing industry expansion. VHC’s affordability, characteristic of Vanguard funds, adds to its appeal. The ETF includes over 380 companies, with top holdings like Johnson & Johnson, UnitedHealth Group, and Merck & Co.
Compared to similar funds, VHC exhibits a below-average risk profile, making it a secure choice among health ETFs. Its annual expense ratio is a low 0.1%, costing about $10 annually per $10,000 invested.
Tortoise Water Fund
In light of droughts and climate challenges in southern states, water infrastructure companies are gaining importance. Launched just in 2018, Tortoise Water Fund is a lesser-known option with promising long-term potential. The fund focuses on firms involved in water infrastructure development, maintenance, and wastewater treatment.
Major holdings include Pentair and Aqua America. The expense ratio stands at approximately 0.4%. While smaller than tech giants, this water-focused ETF is a smart, niche investment option for those interested in sustainable resource management.
Loncar Cancer Immunotherapy ETF
For investors seeking to target innovative healthcare sectors, this fund specializes in cancer research and treatment companies. It comprises 30 stocks, with leading holdings like Merck, Novartis, and MorphoSys.
Investing in this ETF entails higher risk, due to the clinical trial uncertainties inherent in biotech development. Nonetheless, the potential for significant long-term gains makes it a worthwhile consideration. The expense ratio is approximately 0.79%.
Many emerging investors prefer ETFs for their low costs and diversification advantages over mutual funds. However, given industry volatility, continuous monitoring is essential. Choosing the right ETF requires research and possibly professional guidance to navigate risks effectively.
If you’re planning to invest in ETFs, thorough understanding and diligent analysis are key. Seeking advice from financial experts or experienced peers can help you identify the best options suited to your financial goals.
