"When tech stocks swing wildly and consumer spending wobbles, healthcare companies keep selling drugs, performing surgeries, and processing insurance claims. That steady demand makes the sector attractive when investors want growth without the full roller coaster. But what if you could get healthcare exposure with a more concentrated bet on the companies actually driving innovation rather than just riding sector momentum? That's where Simplify Health Care ETF (NYSEARCA:PINK) comes in. It's not trying to own every healthcare stock. It's trying to own the right ones."
"PINK takes a concentrated approach with just 60 holdings focused almost exclusively on healthcare innovation. The fund's conviction shows in its top positions, where Eli Lilly and Co (NYSE:LLY) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) together represent over 15% of assets. This concentration means the fund's performance lives or dies by the execution of its largest bets, with the top 10 holdings driving roughly half of all returns."
Healthcare demand remains steady during market volatility, making the sector defensive, but concentrated innovation exposure targets different return drivers. Simplify Health Care ETF (PINK) allocates nearly 90% to healthcare across 60 holdings and focuses on pharma innovation, biotech breakthroughs, and medical-device leaders rather than broad sector diversification. Top names such as Eli Lilly and Regeneron comprise over 15% of assets, and the top 10 holdings drive roughly half of returns, increasing reliance on execution. Since its October 2021 launch, PINK returned 58%, outpacing the XLV benchmark by about eight percentage points, and charges a 0.51% expense ratio.
Read at 24/7 Wall St.
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