Since mid-2010 healthcare stocks have been on a tear, with the S&P Global 1200 Health Care Index gaining nearly 26% a year for the past three years. Part of the reason for this has been that the sector has a number of stable businesses that generate strong free cash flows, pay above average dividends, and have an earnings stream that is not tied to the global economy.
Healthcare is considered a defensive sector, and given many investors’ preference to play defense in light of potential volatility, it has gained a lot of attention. And rightly so. Since September the broader equity markets have been hit hard, yet healthcare is down marginally.
Fund Company: TD Asset Management Inc.
Load: No Load
Minimum Investment: $500
RRSP/RRIF Suitability: Fair
Interactive Performance Chart