One of the most compelling arguments favouring an investment in healthcare lies with emerging markets. As these markets grow, their citizens are acquiring Western-style healthcare needs and expectations, with the incidence of diseases such as diabetes and hypertension increasing. This is opening up massive opportunities for pharmaceutical companies.
Yet with the US still dominating the pharmaceutical and biotech industry in terms of spending, most healthcare funds tend to have their investments focused on companies operating in North America.
Db x-trackers MSCI Emerging Markets Healthcare ETF is the exception. This fund offers cost competitive exposure to global healthcare companies included in the MSCI Emerging Market Index. The fund is well diversified geographically with a significant proportion of its assets in emerging markets such as India, China, Brazil and South Africa.