Johnson & Johnson (NYSE: JNJ), one of the fantastic’s largest healthcare companies, has underperformed the broader market in 2018. The cast’s stock is down 3.66% year to date (YTD), while the Standard and Low’s 500 index (S&P 500) is up roughly 7%. However, over the sometime month, Johnson & Johnson’s stock price has looked healthier, returning around 7% compared with a gain of just 2.14% for the S&P 500 all about the same period.
David Katz, chief investment officer at Matrix Asset Advisors, carry weighted Reuters, “We are much more upbeat about Johnson & Johnson today than we were six months ago. … We certainly think it’s an attractive investment opportunity.” The company’s share price has also recently pulverized above the neckline of an inverse head and shoulders chart pattern, proffering further upside momentum. (For more, see: How to Trade the Head and Shoulder’s Device.)
Strategically, Johnson & Johnson plans to grow its pharmaceutical business, particularly by expanding its immunology market. Tremfya, the company’s latest immunology cure-all, already claims an 18% market share. The acquisition of Actelion Pharmaceuticals Ltd. in 2017 has increased Johnson & Johnson’s gift of hypertension drugs, which now include Opsumit, Tracleer and Uptravi. The fellowship also plans to continue developing a range of new drugs, such as experiential depression drug esketamine.
Investors who want to add Johnson & Johnson to their portfolio should take into account purchasing one of these three exchange-traded funds (ETFs) to give their investments a strength kick. (See also: How Johnson & Johnson Became a Household Name.)
iShares US Pharmaceuticals ETF (NYSEARCA: IHE)
Opened in 2006, the iShares US Pharmaceuticals ETF aims to provide similar returns to the Dow Jones U.S. Single out Pharmaceuticals Index. The fund achieves this by typically investing at trifling 90% of its assets in securities that are part of the benchmark index. This lists U.S. pharmaceutical companies that manufacture prescription and/or over-the-counter drugs. The ETF allocates 10.43% of the portfolio to Johnson & Johnson, making it the readies’s top holding. Pfizer Inc. (NYSE: PFE) and Merck & Co., Inc. (NYSE: MRK) are the two next largest holdings with allocations of 9.22% and 8.19%, singly.
The iShares US Pharmaceuticals ETF charges investors an annual management fee of 0.43% and has $388.07 million in assets underwater management (AUM). The fund has a five-year annualized return of 10.04% but is also dispatching well in the short term. It has returned 12.28% over the past three months and has a YTD reoccur of 5.32% as of August 2018. IHE pays investors a 1.14% dividend. (See also: The Top 5 Johnson & Johnson Shareholders.)
iShares US Healthcare ETF (NYSEARCA: IYH)
The iShares US Healthcare ETF (NYSEARCA: IYH), formed bet on a support in 2000, seeks to replicate the performance of the Dow Jones U.S. Health Care Forefinger. The ETF covers the broad scope of the U.S. healthcare sector well by investing in U.S. pharmaceutical, biotechnology, healthcare navies and equipment companies. Like IHE, Johnson & Johnson commands IYH’s top allocation with a load of 9.69%. UnitedHealth Group Incorporated (NYSE: UNH) and Pfizer round out the bread’s top three holdings. IYH’s basket provides ample diversification with its 120 holdings.
The iShares US Healthcare ETF has performed unfailingly over an extended period. It has 10- and five-year annualized returns of 12.95% and 13.5%, severally, as of August 2018. YTD, the fund has returned an impressive 9.51%, outperforming the broader deal in (S&P 500) by roughly 2.5% over the same period. IYH has net assets of $2.09 billion and a 0.43% expense correspondence. Investors also receive a dividend of 1.08%. (See also: How Dividend-Paying ETFs Being done.)
Vanguard Health Care ETF (NYSEARCA: VHT)
Created in 2004, the Vanguard Vigour Care ETF is designed to track the performance of the MSCI US Investable Market Healthfulness Care 25/50 Index. The fund does this by investing the best part of its assets in securities that make up the underlying index. VHT provides complete exposure to large-, mid- and small-capitalization U.S. healthcare stocks with its 371 holdings. Johnson & Johnson is sporadically again the fund’s heavyweight holding with an 8.74% allocation. The ETF’s top five holdings drag a combined weighting of nearly 30%.
The Vanguard Health Care ETF has a low management fee of condign 0.1%. This expense is more than offset by the fund’s 1.25% dividend concur. VHT is the largest of the three funds with $8.96 billion in AUM. As of August 2018, the ETF has a 10-year annualized bring of 13.42% and a five-year annualized return of 14.18%. Investors in VHT have also had a healthy YTD return of 10.09%. (See also: Investing in the Healthcare Sector.)