iQ Healthcare Model
INVESTMENT OBJECTIVE
iQ Healthcare Sector Model seeks capital appreciation by selecting stocks of companies operating in the healthcare sector. The Model aims to capitalize on the growth potential of healthcare-related industries, such as pharmaceuticals, biotechnology, medical devices, healthcare services, and healthcare technology. It may also focus on companies involved in research, development, and innovation within the healthcare field.
RULES-BASED SELECTION PROCESS
The iQ Healthcare Model employs the following unemotional rules-based process:
Start with the largest 100 domestically-traded companies from the Healthcare sector
Select the 30 companies with the highest Operating Earnings Yield and Share Buyback Ratio.
Screen by Price Momentum and select the top 10.
This model reconstitutes every February, May, August and November
Why invest in Healthcare stocks?
Investing in healthcare stocks can provide several potential benefits, including:
1. Growth potential: The healthcare industry is expected to continue to grow as the global population ages and demand for healthcare products and services increases. Healthcare companies often have the potential to deliver above-average earnings growth.
2. Innovation: Healthcare companies are often at the forefront of innovation, with new drugs, medical devices, and technologies constantly being developed. Investing in healthcare stocks can provide exposure to new and disruptive technologies that have the potential to revolutionize the industry.
3. Diversification: Healthcare companies operate in a range of industries, including pharmaceuticals, biotechnology, medical devices, and healthcare services. Investing in healthcare stocks can provide diversification benefits for a portfolio and can help to reduce overall risk.
4. Defensive characteristics: Healthcare companies tend to be less cyclical than other sectors, as demand for healthcare products and services tends to be relatively stable. This can make healthcare stocks an attractive option for investors looking for defensive characteristics.
5. Societal importance: The healthcare industry plays a critical role in society, and investing in healthcare stocks can provide exposure to companies that are making a positive impact on people's lives.
It's important to note that investing in healthcare stocks also comes with potential risks, including the potential for regulatory and legal challenges, as well as the risk of clinical trial failures for pharmaceutical and biotechnology companies.
Please be aware that investing in healthcare stocks involves inherent risks and uncertainties. The performance of healthcare stocks can be influenced by various factors, including regulatory changes, clinical trial results, drug approvals, and market conditions. Past performance of healthcare stocks is not indicative of future results, and there are no guarantees that healthcare stocks will perform favorably.