Nowadays, in the design of structured products, the focus is increasingly on the sustainable nature of the underlying assets. The new deritrade function “Advanced search” can help by enabling you to search for alternative underlyings not only using filters such as Industry, Sector and Country but also an extremely detailed ESG filter. On the left-hand side of the search window, you can define your criteria and on the right-hand side, the underlyings appear which fulfill your parameters. The ESG data is taken from MSCI.
The example on the screenshot is based on the following trade idea with three underlyings (for details on the health care sector, see below). If, for example, these underlyings do not meet the desired ESG criteria, they can be replaced/supplemented using the new “Advanced search” function.
Everyone needs healthcare – at some point. And something everyone needs represents opportunities for investors. With an estimated USD 8 trillion spent globally on healthcare – around half of which is spent in the US – the sector is outpacing the wider global economy. How, then, could investors benefit from this growth?
The pandemic exposed some weaknesses in the healthcare sector, highlighting the need for increased levels of investment in certain areas and associated potential return opportunities. The population is growing – and aging – and obesity rates are soaring: as a result, we can expect to see rising demand for healthcare. So-called “smart” healthcare is expected to become an important megatrend in the financial markets with the future of healthcare being shaped by digitalization and research developments.
On top of that, large pharmaceutical and other healthcare companies are expected to have considerable amounts of cash on their books. This could lead to increased M&A activity, which could also be a catalyst for further investment returns.
In conclusion: Aging trends, advances in technology and great potential for M&A should create attractive opportunities for healthcare stocks.
Against this background, Vontobel maintains an overweight position in US healthcare stocks.