I think that in an inflationary environment and an environment with rising key interest rates, healthcare & pharma & biotech will outperform. Many stocks are so cheaply valued that the upside is simply much greater than the downside. Wall Street is underinvested in healthcare.
However, when looking for a meaningful ETF on this, I run into difficulties. Practically all ETFs in the sector available in Germany have United Health, Pfizer, Lilly, etc. as their largest position. They are all strongly run and no longer really cheap. That's why I don't really think the healthcare ETFs make sense, because I'm not taking advantage of the undervaluation.
The only ETF that comes close to my criterion is this one. It holds (weighting sorted in descending order):
-Amgen
-Gilead
-Moderna
-Regeneron
-Illumina
-Vertex
-Biogen
-Astra Zeneca
-Seagen
-Biontech
Of these, at least half of the largest stocks are promising and favorable. But unfortunately it is still not optimal. I would love to put together my own ETF as I do with the Semis, but unfortunately I lack the capital lmao.
What are the opinions here? Do you have interesting alternatives?
