ETF of the Week: Simplify Health Care ETF

PINK launched during breast cancer awareness month in October from Simplify, the issuer. Simplify donates all of its net profits from management of the fund to Susan G. Komen, a leader in the fight against breast cancer, which affects one in eight women globally.

“By bringing this awareness to the surface, not only can investors learn more about the advances that we’re making in healthcare, but learn more about the companies involved, where it’s going, and actually have it participate in your portfolio,” Lydon explains.

Many investors generally don’t look at the sector breakdowns of their portfolios, but it can be a relatively straightforward process with some of the technology available today. If they find that their portfolio is light on healthcare, or they just believe in the companies driving healthcare forward, PINK is a good solution that offers exposure to some of the fastest-growing areas within the healthcare sector.

Recent advancements in gene editing and mapping mean that it could be possible to have your DNA analyzed for risks such as breast cancer by simply giving a small amount of blood at an annual checkup within the next few years.

“CRISPR, one of the companies that’s behind that, is very much forward-thinking and does a great job and is very much aligned with breast cancer research through genome editing,” says Lydon. “Why would you align your individual healthcare goals along with your portfolio rather than just arbitrarily taking major sector indexes or the sector allocation that the S&P might give?”

PINK is an actively managed fund that falls under the umbrella of impact funds that seek social and investment goals. Lydon explains that philanthropy used to come at a cost, such as in management fees or performance, but today, funds such as PINK are bucking that trend.

“I think the folks at Simplify are going after it with the idea that if you were to put this ETF up against the healthcare index, over time, just by the innovation in the companies that are involved in this portfolio, you not only would do as well but potentially do better,” Lydon says.

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