Vanguard Health Care ETF (AMEX:VHT)

As part of my monthly stock investment, I am investing the first third of my investment in VHT, which is another low-cost Vanguard ETF, this one focusing exclusively on the health care industry. It has not escaped my attention that three of the four largest holdings of the ETF are stocks I already own: JNJ, PFE, and ABT. I continue to think the first and third of those in particular are undervalued. But by investing in VHT I can greatly diversify my health care exposure, while still maintaining my bet on the investment future of the health care industry in this country, which is based on its current relative low valuation, and the not-original idea that baby boomers are going to consume a lot of health care. VHT is probably the best way to bet on that, unless one is a genius stock-picker, which I have increasingly begun to suspect I am not. As a bonus, it has strongly underperformed the SPY over the past year, as sexier sectors have led the stock rally. While that underperformance may continue in the short term, if we have a downturn its relative low valuation should provide some insulation, and in the longterm I must keep faith that long-term returns will be greater if a purchase is made at a lower p/e, other things being equal. The 5-star CAPS rating doesn't hurt, either, as apparently not a single all-star currently downthumbs it, even though all who have upthumbed it are eating red.... I'll post my other two picks for this month later, when I purchase them, likely on Monday. As always, all my picks are my real money portfolio, and are my only real life picks. They constitute a small portion of my total assets, the rest of which are in a 401ks, in my house, or in cash emergency savings. Happy picking!

Health care costs in developing countries are growing significantly.

Health Care is a beaten down industry that should fare far better in the future. Tough to pinpoint which company will profit from the next big thing. ETF allows us to own a piece of everything.

Congress will pass around the idea of health care reform but nothing will be done.

Betting to outperform the 500 this leg down.

Major health care reform will never take hold

Vanguard Health Care ETF

The overall market, in my opinion, has 3 sectors have potential to outperform over the next 4 quarters,, commodities, healthcare and technology... I like ETF for their relative sector-related safety.. VHT is the best of bunch when it comes to health care..

Healthcare is important to baby boomers

Healthcare at a bargain due to financials-led bear market. 2+ year rebound should be superb!

Two words: Baby-boomers.

Part of a diversified ETF portfolio.

Pretty simple economics really. Baby boomers have a lot of money. Baby Boomers will need health care. Baby boomers will continue to pay for health care as they get older and their health care needs go up.

But don't believe the hype that this is recession proof. There are just as many Americans that can not afford health care and must make the tough decision of feeding their families or paying for a doctor's visit which really is like a catch 22 because you really can't provide if you're not in good health and that's the sad state that our society is in.

Baby Boomers!

The baby boomers will almost certainly put increased demand on the health care system and the supporting industries in the years to come, hopefully proved to be profitable.

i like what i see

baby boomers, inflation

Expense ratio 0.22%
273 stocks

Keep on aging baby boomers! And let the healthcare industry keep on booming.