ETF Talk

Accelerate with This Growth-Oriented Health Care Play

Starting this week, we’ll be featuring some of the top-performing momentum exchanged-traded funds (ETFs) in our column.

Today’s featured fund, Invesco DWA Healthcare Momentum ETF (PTH), provides an alternate take on U.S. health care firms. Momentum funds attempt to employ a price momentum strategy, which aims to profit from proven trends in the market.

An example of this strategy is when a trader takes a long position in an asset that has shown an upward trending price in the hopes of reaping additional upside potential. Founded in October 2006, PTH has been around for over a decade but only in 2014 did the fund switch to track a momentum-weighted index, which moved the ETF away from exposure to the neutral segment in larger U.S. health care firms toward segments that are much more growth-focused.

In addition, the fund also places an emphasis on biotech and research sectors. As a result, the fund has a bias towards small-caps and carries considerably more risk.

Click here to read the rest of this article, “Accelerate with This Growth-Oriented Health Care Play.


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