Should you bundle health care stocks in a single industry exchange-traded fund?
Should investors consider bundling health care stocks into a single industry exchange-traded fund (ETF)? With the global health crisis in recent years, health care stocks have garnered significant attention from investors. The sector boasts a diverse range of companies from pharmaceutical giants to innovative biotech firms, presenting a potentially lucrative opportunity. However, are there any risks involved in consolidating these stocks into a single ETF? What are the benefits and drawbacks of such a strategy? Should investors be wary of over-concentrating their portfolios in one sector, even if it's a growing one? And how does the performance of these ETFs compare to traditional diversified portfolios? These are some of the key questions that investors should consider before making a decision.