Healthcare and two more themes investors like right now
CSL is a darling of the Australian equity market and a poster child for investing in the healthcare sector. At one point in 2020, CSL became the most valuable company on the ASX boasting a market cap exceeding $144 billion.* Yet on a global scale, CSL just scrapes into a list of the twenty most valuable healthcare stocks.
BlackRock’s Blair Hannon says that while the sector is being thrust into the spotlight right now, the long-term case for healthcare is also compelling. Over the past decade, the S&P Global 1200 Healthcare Index has outperformed the S&P500 and the ASX200 indices by ~5% and ~14% per annum respectively.
In this short video, Blair explains thematic investing in more detail and highlights three different themes that are proving popular with investors looking to tilt exposure within diversified portfolios.
*Note: the market cap for CSL has since fallen to $130 billion, making it the second largest company on the ASX
Thematic investing focuses on predicted long-term trends rather than specific companies or sectors, potentially enabling investors to access structural, one-off shifts that can change or create an industry. Find out more.
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