I’m Buying This Health Care ETF in August

The health care sector has consistently rivalled technology when it comes to its growth trajectory over the past decade. Investors should be eager to seek exposure to the health care space going forward.

Investors who want to get in on the burgeoning health care space should consider the Vanguard Health Care Index ETF (TSX:VHT). This exchange-traded fund (ETF) has dropped 12% in 2022 as of close on August 30. It is down 11% in the year-over-year period. The ETF has delivered annual returns of 10% since its inception. That is a nice rate for investors on the hunt for growth.

This ETF seeks to track the performance of a benchmark index that measures the investment return of stocks in the health care sector. Investors who snatch up this ETF will only have to take on a relatively cheap expense ratio of 0.10%.

As far as weighting is concerned, the Vanguard Health Care ETF has the largest sector exposure in the pharmaceuticals space at 27%. Meanwhile, health care equipment and biotechnology round out the top three. The top stocks in this fund include UnitedHealth Group in the top spot. Johnson & Johnson, and Pfizer round out the top three holdings. That means investors will get plenty of exposure to the profit machine that is health insurance in the United States as well as exposure to top COVID-19 vaccine producers.