Stan WongVanguard Health ETFVHTPAST TOP PICKJun 09, 2020

For a US tax-free account.

Basket of big biotech companies and healthcare names. LLY is a big weight at almost 12%. UNH is in there. ABBV, JNJ, MRK. And so on. Likes it as a low-cost way to play the US healthcare sector, for sure.

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Allan Tong’s Discover Picks Altogether,VHT offers broad exposure paying a so-so dividend yield of 1.31%, but charges a measly 0.1% MER. It's stable, boasting 0.74 beta. The underlying holdings are the selling point. For instance,AbbVie (disclosure: I own shares) offers reliable earnings and pays a reliable dividend of 4.16%. While it's leading drug will come off patent, the company boasts a pipeline of potential to replace it. One caveat with VHT and any U.S. ETF is the strong U.S. dollar at the moment. Read 3 Best U.S. Healthcare ETFs for our full analysis.

(A Top Pick Jul 04/19, Up 13%) A favourite sector. Resilient, non-cyclical. Tailwinds are aging population and growing middle class in developing countries. 10 bps expense ratio. Excellent names. Continues to add to it.

A contrarian play. Sector still has great growth characteristics. J&J, Pfizer, UnitedHealth Group, Abbott Labs, Merck. Large cap names, solid earnings, fundamentally strong, decent P/E ratios. Underperforming the S&P, but the political risk has been overstated. Outperforms late in the cycle, low beta, insulated from US-China disputes.

This is a contrarian pick for him. The health care sector was the leading sector in 2018. So far this year, it is the worst performing sector. This is because of political policies that effect current business models. There is greater political scrutiny that may be coming. He likes the defensive property of this sector. expense ratio = 0.1%