Could The Small Cap Healthcare ETF Be A Great Pick?

May 15, 2012

 

Small pharmaceutical companies are likely to become targets of big company acquisitions, as established drug companies seek new products before their major money makers go off patent, which could boost the share price of a PowerShares ETF focused on small-cap names in the medicine-making industry, according to an article on Zacks.

The PowerShares S&P Small Cap Health Care Portfolio (NYSEArca: PSCH) tracks the S&P SmallCap 600 Capped Health Care Index, which provides investment exposure to biotechnology, pharmaceuticals, facilities, and medical technology and supplies, Zacks said.

PSCH could be more volatile than other funds in the health care sector, but thanks to its growth potential and focus on small securities, investors may find it worth the risk, the article said.

Go to Zacks.com to read more on PSCH.

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