You Can Now Invest in Longevity Funds, But Should You?

Dec 15, 2020 / Amanda Chase, Horsesmouth Assistant Editor

Longevity now ranks as one of the most significant forces shaping the global economy, opening up multi-trillion dollar opportunities to reshape societies, hopefully for the better. As a result, money managers lately have been coming up with ways you can invest to—ideally—profit from longevity trends, through specialized exchange-traded funds (ETFs). These newish funds, with mildly amusing stock symbols, include Globl X Longevity Thematic ETF (symbol: LNGR); CI Global Longevity Economy Fund (LONG) and the Long-Term Care ETF (Old).

Longevity funds invest in companies that could benefit from healthy aging; financial services for longer lives; aging in place; self-driving vehicles and technologies that aid long-term care or other sectors contributing to higher-quality lives with longer life spans. The core idea is that living longer is only good for the individual, society and the economy if the extra years are enjoyed in good health and without fear of running out of money.

The question is: Should you invest some of your money in longevity? The lure is obvious. The logic of the longevity theme is powerful. Yet caution seems like the right stance right now, since longevity investments are just starting to enter the mainstream. To be sure, investor interest in thematic funds—ranging from robotics to cannabis to longevity—has swelled along with the recent bull market in stocks. Morningstar calculates that thematic funds attracted approximately $195 billion worldwide in 2019, up from $75 billion three years earlier. But here’s the important thing to understand: Thematic funds are risky.

You can find the full article at Next Avenue.

 

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