XLV - HQH: Discount Remains Attractive With A Now Higher Distribution Rate
2024-07-17 16:33:49 ET
Summary
- The healthcare sector is traditionally defensive during economic downturns, but not all industries within the healthcare sector are created equal.
- abrdn Healthcare Investors Fund focuses on the more cyclical biotech space, with over half of its portfolio allocated there.
- HQH's managed distribution policy was increased significantly since our prior update, which was a factor in the funds discount narrowing, but it continues to trade at an attractive discount.
Written by Nick Ackerman, co-produced by Stanford Chemist
Healthcare is traditionally a defensive sector that can hold up relatively well during economic downturns. The reason is quite simple: even if the economy is performing poorly, people will still have necessary healthcare needs that won't be interrupted. That said, there is a more cyclical industry within the healthcare sector, the biotech space....
HQH: Discount Remains Attractive With A Now Higher Distribution Rate