Want to “taobao” in the shock market?Take a look at these two biotech ETFs

2022-05-11 0 By

Wall Street seems to care about only two things right now, the Fed’s next move and the geopolitical crisis in Eastern Europe.As a result, many stocks and ETFs on Wall Street are in trouble and have lost a significant chunk of their value.The Dow is down 9.8% so far this year.However, there are still outliers in the market. Data show that the global biotechnology market will grow at a compound rate of more than 15% between 2021 and 2028. Therefore, we are going to focus on etFs in this sector today, as the stocks in this sector are expected to rebound and hit new highs in the coming months.Long-term investors can look for a more appropriate entry point in such a recent market backdrop.The following two ETFs are on our “buy and hold” list: 1.VanEck Biotech ETF Current price: $159.9052 Week Price range: $153.39 to $222.22 Dividend yield: 0.25% Expense ratio:Let’s take a look at our first fund, the VanEck Biotech ETF (NASDAQ:BBH) (BBH), which invests in gene-therapy research companies among Biotech companies that may also be working on diagnostics.BBH, which started trading in December 2011 and tracks the MVIS US Listed Biotech 25 index, now owns 25 stocks, 90% of which are in the U.S.Biotech companies from Ireland, Germany, China and Switzerland followed.The net assets of the top 10 companies accounted for about 65% of total assets of $472.3 million.Including Amgen (NASDAQ:AMGN)(AMGN), Gilead Sciences (NASDAQ:GILD)(GILD), Moderna Inc (NASDAQ:MRNA)(MRNA),Fortey Pharmaceuticals (NASDAQ:VRTX), Regeneron Pharmaceuticals Inc. (SA:REGN34) (REGN), AND IQVIA Holdings Inc. (NYSE:IQV) (IQV).BBH is down 16.5% over the past 12 months and is down 14.2% since the start of 2022, while the stock hit a record high in August 2021 and the fund is down about 28% since then.At present, the PE and PB of the fund are 18.54 and 5.58 times, respectively. Potential investors can pay attention to the fund at around $155.2. Hartford Longevity Economy ETF Current Price: $26.8552 Weeks Price Range: $24.19 to $28.36 Dividend yield: 2.09% Expense Ratio:The second fund we will focus on is health, longevity, etc., also known as the “longevity economy”.So this is not a pure healthcare sector, but a fund that focuses on multiple areas.By 2040, there will be about 80 million Americans over age 65, an increase of about 45 percent from the current 55 million, and the average person in this group will spend at least $3,000 a year on health care, according to the U.S. Department of Labor.Similarly, in Europe, the spending power of people over 60 is expected to reach $5 trillion by 2030.Against the backdrop of continued strong global population and spending power growth, Wall Street participants have no reason not to pay attention.The Hartford Longevity Economy ETF (NYSE:HLGE)(HLGE) invests in companies focused on aging populations around the world.The fund began trading in March 2021.(HLGE weekly chart is from Investing.com.) HLGE currently has nearly 200 companies and its top 10 assets currently account for about 10% of its total assets of $22.5 million.By industry, it accounts for about 29 percent, healthcare 23 percent, consumer discretionary 15 percent, communications services 12 percent, and finance and consumer staples about 4 percent.The top 10 holdings include health benefits giants Anthem Inc (NYSE:ANTM) and UnitedHealth, consumer technology giant Hewlett-Packard, pharmaceutical giant AbbVie, electronic data storage provider Seagate Technology, and technology giant Google.HLGE hit a record high on January 4, 2022. However, since then, the fund has lost more than 5.3%. Despite this, the fund is still up 8.2% in the last year, with PE and PB at 15 and 3.1 times, respectively.