ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Dual Impact Channel
  2. HART Strong on Healthcare Bounce Back Plays
Dual Impact Channel
Share

HART Strong on Healthcare Bounce Back Plays

Tom LydonDec 22, 2022
2022-12-22

With compelling long-term opportunities available across multiple industry groups, healthcare has the makings of a 2023 redemption, potentially boding well for exchange traded funds such as the IQ Healthy Hearts ETF (HART ).

While the sector disappointed in 2022, HART could prove to be a credible 2023 rebound idea as growth and innovation return to the healthcare sector, perhaps prompting investors to revisit biopharma and other research and development-intensive companies.

Among the factors healthcare investors should assess are companies’ patent portfolios and product pipelines — the latter of which can signal avenues for offsetting patent cliffs while offering new revenue and profit potential. Fortunately, some HART components score well in those categories.

“Patents are temporary government licenses that exclude competition from copying an invention. For example, in pharmaceutical companies, patents are necessary owing to the ease with which some drugs can be replicated. Similarly, patents are vital in the medical devices industry to protect companies’ product designs,” notes Morningstar analyst Benjamin Slupecki.

Another source of allure with HART is that the ETF is home to several names appearing on Morningstar’s list of the 20 best healthcare stocks to own. That group includes venerable fare such as Novartis (NYSE:NVS), AstraZeneca (NASDAQ:AZN), Novo Nordisk (NVO), Pfizer (NYSE:PFE), Eli Lilly (NYSE:LLY) and Dow component Johnson & Johnson (NYSE:JNJ).

“Novo Nordisk NVO, for its part, is the lone representative for the biotechnology industry,” adds Slupecki. “Novo Nordisk is the leading provider of diabetes-care products in the world, holding 50% of world market share. The company has two moat sources: intangible assets and cost advantage.”

That stock is HART’s largest holding at a weight of 5.6%. Wide moat Johnson & Johnson, which accounts for 5% of the HART roster, is another one of the components that could drive upside for the fund in 2023.

That healthcare giant is “supported by intellectual property in the drug group … and strong brand power from the consumer group. Despite carrying some lower-margin divisions, J&J maintains strong pricing power and has posted gross margins above 70% during the past four years, validating its strong competitive position,” according to Morningstar analyst Damien Conover.

As for Pfizer, which is HART’s second-largest holding at a weight of 5.3%, that company is about much more than the coronavirus vaccine. Pfizer has a deep portfolio of drugs with far-off patent cliffs, which as Morningstar notes, gives the firm time to develop new products before generic competition becomes an issue.

For more news, information, and strategy, visit the Dual Impact Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X