“And many companies in the fund’s portfolio will likely end up growing through mergers. Or they could become targets themselves.”
The ETF has 41 holdings with an average market cap of $37.5 billion. Its top three holdings are Depomed Inc. (Nasdaq: DEPO), Cempra Inc. (Nasdaq: CEMP), and Catalent Inc. (NYSE:CTLT). Those three stocks are up 89.8%, 56.4%, and 19.5% in 2015, respectively.
In the last 12 months, XPH has climbed 21%. The Dow Jones and S&P 500 are up just 0.9% and 3.4% in the same time.
“The beauty of a play like this one is that rather than try to pick a single winner, we get the benefit of the entire sector’s operations,” Robinson said. “That makes XPH an excellent foundational investment to pave your road to wealth.”
By investing in an ETF, you also mitigate the risk of picking just one of the top pharmaceutical companies on the market.
The Bottom Line: The $1 billion Valeant acquisition of Sprout today will bring the revolutionary drug Addyi into Valeant’s product portfolio.
The merger underscores the profit opportunity we’ve been detailing all year at Money Morning The SPDR S&P Pharmaceuticals ETF is one of the best ways to profit from the world’s top pharmaceutical companies and their massive deals.
The ETF is up 21% in the last 12 months with room to run.
We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars;new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet. And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.