- ETFs are a great way to approach broad plays that focus on sector allocation rather than intra-sector allocation where quality of decisions results in more marginal benefits.
- We think that the theme for the year is inflation and that opinions on this will shift the markets more than most other forces, especially where it concerns geopolitical issues.
- Pricing power and fixed costs bases are where to focus, and the pharma sector has that in spades, and we'd consider them overweight.
- We also want to avoid expectations related to COVID-19 related products and ETFs with too much early-stage biotech as they suffer from 'reflexivity'.
- The IBB ended us being the most appropriate pick in our view.
For further details see:
Which ETFs Should Investors Be Watching Now? Our Favorite Is The IBB