- VHT invests in healthcare stocks.
- Healthcare is a generally defensive sector, but VHT's portfolio is also capable of strong earnings growth and return on equity.
- While the dividend yield is relatively tight, VHT's high quality portfolio should be able to match the overall market's return in the medium term, with some modest out-performance potential.
- That is owing to a combination of relatively low beta/volatility, good projected earnings growth, and a constructive narrative/backdrop for increased healthcare spend.
- However, the fund is likely trading at close to fair value, and as such I am neutral on the fund with a bullish bias; VHT is probably worth holding.
For further details see:
VHT: Likely Trading At Fair Value, With Constructive Outlook Ahead