Mohandas Gandhi said that health is the real wealth, not money — but a new series of funds could blur the line, helping investors cash-in on health trends.
Denver-based Janus Capital Group has launched four new thematic ETFs aimed at capturing demographic and behavioral changes related to health and fitness.
On Thursday, the Janus Capital Long-Term Care ETF, The Health and Fitness ETF, The Organics ETF and the Obesity ETF began trading on the NASDAQ exchange.
“We’ve seen questions around addressing these long-term issues from pensions, endowments, consultants and advisors,” says Nick Cherney, Janus Capital’s senior vice president and head of exchange-traded products. “Banks, wirehouses and wealth managers are trying to get ahead of these trends. We think that there will be significant interest in well-designed products that capture these trends.”
The Long-Term Care ETF, which carries the ticker OLD, aims to capture the world’s aging population by investing in long-term care companies including large REITs like Ventas and Welltower.
“For the mass-affluent U.S. investment management universe, long-term care is already a huge issue because it’s become part of their planning,” Cherney says. “The difference between retiring at 65 and retiring at 75 is often the cost of long-term care. We felt like it was something that could be meaningful to investors.”
Janus notes that in the U.S. alone, the population over the age of 65 will double by 2050 to 83.7 million people.
The Health and Fitness ETF , which carries the ticker FITS, aims to capture Americans’ increasing interest in healthy lifestyles by investing in health clubs, sports apparel companies, outdoor activities companies and fitness equipment manufacturers.
“Companies like Nike, Adidas and Lululemon are doing well because there’s been a shift towards fitness,” Cherney says. “People are spending a lot of money going out and buying sports apparel, and now they’re not just doing it if they’re running marathons or doing crossfit. We’re also investing in people selling bikes and golf equipment and facilities like gyms.”
Janus notes that health care club memberships have climbed by 19 percent since 2008, and that sales in sports apparel and wearable fitness technology are also trending upwards.