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iShares launch US medical devices ETF


The new ETF focuses on firms involved in the manufacturing and distribution of medical devices

The new ETF focuses on firms involved in the manufacturing and distribution of medical devices

iShares has launched an ETF focusing on medical device manufacturers in the US to provide a targeted approach to healthcare investing.

The iShares US Medical Devices UCITS ETF (UMDV) offers investors exposure to a “broad range of US companies involved in the manufacturing and distribution of medical devices” and is available for a total expense ratio of 0.25%.

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It tracks the Dow Jones US Select Medical Equipment Capped 35/20 index, which is comprised of companies in the US Healthcare GICS sector, capped to “ensure diversification” within the index.

The ETF debuted with approximately 59 holdings, of which the largest, Abbott Laboratories and Thermo Fisher Scientific, constitute 13.7% and 12.5% respectively.

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iShares said: “The healthcare sector has remained front and centre for investors during the Covid-19 pandemic. This short-term focus, coupled with the long-term secular tailwinds the sector has seen in recent years, have led to increased inflows into healthcare funds.

“Demand from a growing global ageing population provides long-term support for the broader sector and leads to increased spending on healthcare. This is further supported by innovation across multiple areas in healthcare.

“Given the urgent demand for US medical devices and the long-term nature of the trends underpinning UMDV, investors may consider using the ETF as a satellite component to help drive growth within a US equity or global equity portfolio.”



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