Boulder and Colorado Springs, CO (PRWEB) May 20, 2008
Chartwell Partners Asset Management has introduced another ETFfolio which offers investors an opportunity to avoid the overweighting of big pharma in their healthcare sector allocations. The Cure Disease ETFfolio is a basket of ten HealthShares exchange-traded funds holding companies dedicated to curing the cause of diseases rather than the pharmaceutical business model of developing drugs to just treat symptoms.
According to Chartwell Partners President Carl Delfeld, “If investors look into their portfolios, the S&P 500 Healthcare Index or under the hood of Healthcare ETFs they will find a significant overweighting of large pharmaceutical companies such as Abbot Labs, Merck, Pfizer and GlaxoSmithKline.”
The Cure Disease ETFfolio offers exposure to roughly 200 small and mid-cap life science and biotech companies actively engaged in breakthrough research to cure diseases. Interestingly, half of the 4,500 drugs in phase III clinical trials are being developed by mid-cap, small-cap and even micro-cap companies.
The companies in the Cure Disease ETFfolio are conducting clinical trials in the areas such as arthritis, multiple sclerosis, cancer, coronary artery disease, congestive heart failure, stroke, diabetes, infectious diseases, Alzheimer’s and Parkinson’s disease, glaucoma and emphysema.
But “picking the winners amongst these pioneering companies is a daunting and perhaps fruitless task” according to Delfeld. That is why he recommends the basket approach of the Cure Disease ETFfolio.
One HealthShares ETF in the Cure Disease ETFfolio is HealthShares Cardiology (HRD) holding companies trying to develop products to reduce the $ 400 billion plus that Americans spend annually on cardiovascular disease and stroke. HRD’s universe of companies is global, with company market values between $ 200 million and $ 15 billion and mid-cap companies account for 55% of exposure. There are 22 companies in the ETF basket which is close to optimal in terms of the tradeoff between diversification and return. Even better is its low correlation to the S&P 500 index at only 0.61.
Delfeld also mentioned that the “success of the companies in the Cure Disease ETFfolio is critical to America’s economic future”. America is spending about $ 2 trillion a year on healthcare and it is escalating at the alarming rate of 9% per year. If we just continue to primarily treat the symptoms of health problems with prescription drugs, demographic trends in America will force expenditures to explode along with the government budget that covers most of these costs for seniors. In short, if nothing is done differently and current cost and budget trends continue, America risks becoming an economic basket case.
The Cure Disease ETFfolio will join the suite of ETFfolios available to both investors and investment advisors through Chartwell Partners. These include the:
Core Conservative ETFfolio
Global Fixed Income ETFfolio
Global Dividend/Income ETFfolio
Simple Global ETFfolio
World Economic Freedom ETFfolio
Country Rotation ETFfolio
Global Sector Rotation ETFfolio
Global Growth ETFfolio
American Leadership ETFfolio
Emerging Markets ETFfolio
High Volatility ETFfolio
Asia-Pacific ETFfolio
China Strategy ETFfolio
Global Long/Short Strategy ETFfolio
Chartwell uses these fifteen ETFfolios as building blocks to develop custom global portfolios using a core/satellite strategy. Delfeld was a U.S. Representative to the Asian Development Bank and a consultant to the U.S. Treasury. He is a columnist for Forbes Asia, Managing Editor of ChartwellETF.com and author of “Think Global, Grow Rich”, “The New Global Investor” and “ETF Investing Around the World”.
For more information and media inquiries, contact Carl Delfeld at 719.264.1503 or at cdelfeld@comcast.net
http://www.chartwelletf.com
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