Investing in the Aging Demographics Megatrend

Investing in the whole ecosystem

The following thematic solutions allow investors to comprehensively invest in diversified solutions focused on the aging economy and companies that support said demographic.  

• Global X Aging Population ETF (AGNG) is a thematic solution focused on companies that are expected to contribute directly or indirectly to increasing the lifespans of the senior population of the world. The fund is heavily invested in industries focused on Medical Specialties, Pharmaceuticals and Biotechnology. Popular holdings within the fund include companies such as Eli Lily & Co, Amgen Inc. and Regeneron Pharmaceuticals. 
• Hartford Longevity Economy ETF (HLGE) is invested in companies that comprise industries that reflect certain themes that are expected to benefit from the growth of the aging population and the substantial buying power it represents. The fund’s main allocations are towards information technology and healthcare sectors. Familiar holdings within the fund include Pfizer Inc, Gilead Sciences, and Intel Corp. 

Investing in parts of the ecosystem

As the aging population increases, the ecosystem that supports this demographic should also rise in tandem. For investors that desire pure-play exposure to distinct industries that will support and cater to an aging population, the following solutions should be considered.

• Global X Health & Wellness ETF (BFIT) is a thematic solution focused on companies that develop products and services aimed at promoting physical wellness through an active and healthy lifestyle, including but not limited to fitness equipment and technology, athletic apparel, nutritional supplements, and organic/natural food offerings. Though the fund is heavily tilted toward the apparel industry, there is material exposure to Food, Pharmaceuticals, and Non-Alcoholic Beverage industries also. 
• iShares U.S. Medical Devices ETF (IHI) is purely focused on investing in U.S. companies that are within the medical device industry. Medical equipment manufacturers, such as Thermo Fisher Scientific Inc, Abbott Laboratories, and Boston Scientific Corp are holdings within this solution. 
• iShares U.S. Healthcare Providers ETF (IHF) provides investors with equity exposure to companies within the U.S. healthcare providers sector, particularly health insurance, diagnostics, and specialized treatments. Health care providers, such as United Health Group Inc, CVS Health Corp, and Human Inc, are holdings within this solution. 

Investing in the innovation of the ecosystem

For future-focused investors, who may want exposure to innovation that is occurring within the broader healthcare space, the ROBO Global Healthcare Technology and Innovation ETF (HTEC) is a passively managed solution that retains exposure to companies in the following sub-sectors: diagnostic; lab process automation; regenerative medicine; precision medicine; data and analytics; telehealth; robotics; medical instruments; and genomics. All these sectors speak to health science advancements occurring within modern medicine, aimed at elevating the quality of care accessible to the oldest members of our society. 

As the demographics of society change, particularly regarding age and supporting the eldest among us – there are a variety of businesses and services that will allow individuals to maintain a high quality of life, while also being great investment opportunities. 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.