The Healthcare Stock Play That Could Make Millennials Rich

Core Insights - The article suggests that millennials looking to invest in healthcare stocks might consider a healthcare-focused exchange-traded fund (ETF) rather than individual stocks for long-term performance [2][5]. Performance Comparison - The Vanguard Health Care ETF has shown the following average annual returns: 7.06% over 5 years, 9.58% over 10 years, and 12.85% over 15 years [3]. - In comparison, the Vanguard S&P 500 ETF has higher returns: 16.38% over 5 years, 15.27% over 10 years, and 14.60% over 15 years [3]. ETF Holdings - The top 10 holdings in the Vanguard Health Care ETF as of August 31 include: - Eli Lilly: 10.16% - AbbVie: 5.38% - Johnson & Johnson: 5.07% - UnitedHealth Group: 4.55% - Abbott Laboratories: 3.97% - Merck: 3.64% - Thermo Fisher Scientific: 3.20% - Intuitive Surgical: 2.92% - Boston Scientific: 2.69% - Amgen: 2.66% [4][6]. Investment Outlook - The Vanguard Health Care ETF has averaged annual gains of close to 13% over the past 15 years, making it a promising investment for those optimistic about the healthcare sector [5]. - Eli Lilly, a significant holding in the ETF, has experienced remarkable gains of over 42% annually in the past five years, particularly due to its success in weight loss drugs [6]. Alternative Considerations - For investors uncertain about the healthcare sector, the article recommends considering an S&P 500 index ETF, which includes a diverse range of stocks, including healthcare [7]. - The Motley Fool Stock Advisor has identified 10 stocks that they believe are better investment opportunities than the Vanguard Health Care ETF [8].