BMO EqWt US HthCare Hedged CAD (ZUH.TO)

He likes this because it is equal weighted and hedged against the decline in the US$. You can quite comfortably put this into your portfolio.

Healthcare tends to do quite well during the summer. The healthcare sector on average gains about 4.6% between the start of May to about the end of October. That outperforms the S&P 500 by about 4.3%. This is a way for Canadian investors to play US healthcare stocks.

This has more health care in it, rather than pharmaceuticals. FT AlphaDEX US Health Care (FHH-T) is a rule based ETF in the healthcare area, but they use the Russell 1000, drilling down a little bit more into some of the smaller and less recognizable companies. With this one he is not buying a US health care with an impoverished Cdn$.

Should tend to outperform market cap funds because the smaller cap stocks are better represented.

It is hedged. Healthcare stocks have done incredibly well. He wonders if healthcare will continue to be the leader it was last year as the economic recovery becomes broader. You have had a heck of a run, but he would consider switching back into a broader ETF.

(A Top Pick Sept 16/14. Up 9.27%.) Healthcare is a dominant theme and one that you have to be involved with. It is a long-term theme. One of the few products that trades in Toronto in Cdn$ and gives you exposure to the US health care industry. He would continue to hold this.

Everybody says you should be in health care and you should be in the US, so this seems like a no-brainer. There are a couple of ways of playing this. This one is a Cdn$ hedged version. He thinks healthcare is going to continue to grow. This is a good ETF. (See Top Picks.)

It is hedged to the Canadian dollar. Healthcare. He wants to be in healthcare. It is outperforming. The uptrend is a long, gradual advance.

Charting it against iShares MSCI World Index Fund (XWD-T) for a comparison. Healthcare is a sector that he favours. The outperformance is slight but it is there.

What about a US ETF in healthcare? Healthcare is a good idea and is a long-term dominant theme. In Canada we have an ETF that will give you exposure to the US healthcare sector. BMO’s EqWt US HthCare hedged CAD (ZUH-T). (Also see Top Picks.)

ETF in pharmaceuticals with a dividend? Doesn’t think pure Pharma is the place to be. Prefers more healthcare and this one has about 25% pharma in this. This is an equal weighted ETF which he likes very much.

US healthcare is one area that hasn’t been on people’s radar for quite a while but has been performing pretty well. Healthcare is typically one or 2 products that really drive the earnings of each company. This is an equal weighted ETF, so regardless of which company does well, as long as the overall sector does well it should do well.

Which ETF would you recommend for the US healthcare sector? There is a BMO one available that is Canadian$ hedged and is worthwhile looking at. (ZUH-T)