More Western sanctions on Russia, the increasing probability of aggressive interest rate increases by the Federal Reserve later this year to combat high inflation, and deepening supply chain constraints have been fostering high market volatility lately. Therefore, investors seeking ways to generate stable returns could bet on mega-cap healthcare stocks because they are known for their defensive qualities.
The growing demand for viable drugs from an aging population, efficient equipment for diagnosis, and vaccines and therapies for treating chronic and emerging diseases should keep driving the healthcare industry’s growth. Indeed, investors’ interest in this space is evident in the iShares Global Healthcare ETF’s (IXJ) 7% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 3.3% returns. The global consumer healthcare market is expected to grow at an 8.6% CAGR to $6.65 trillion by 2028.
