The table presented above compares and contrasts the two healthcare ETFs, based on Yahoo! Finance statistics as of the market close on July, 2, 2008.

Despite concerns over the health of the domestic economy along with surging food and energy prices, the healthcare sector has failed to garner investor interest as a safe haven. Most healthcare exchange-traded funds (ETFs) and drug stocks continue to languish near multi-year lows, despite an aging Baby Boomer population and ever-increasing proportion of the gross domestic product (GDP) accounted for by healthcare spending. Last year, total health expenses grew at twice the inflation rate (6.9%), accounting for 16% of the GDP at $2.3 trillion. This growth rate is expected to continue over the next decade to a level of $4.2 trillion in 2016, accounting for 20% of the GDP, based on statistics provided by the National Coalition for …

Glassman, one of Kiplinger’s regular contributor’s and a  Senior Fellow at the American Enterprise Institute, identified companies that he believes are ripe for buying, because, as he writes, “Every investor has a chance to become a partner in some of the best global companies since they are going at a discount”.  And, “Rarely have such clearly excellent companies been available at such clearly terrific prices.”:

1. Pfizer (PFE)

a. medicine is shifting to long-term drug therapies

b. baby boomers are entering their 60’s

c. developing world is getting richer

d. stock trades at 8x 2008 projections and 6.5% dividend yield- dividends have risen 41 years in a row

e. though some of their drugs are facing the prospects of generics soon, the macro factors are too good to ignore.

f. price is 1/3 of what it was in 1999

2. Boeing (BA)

a. Dominant aerospace company in the world

b. A++ rating

c. last year’s Return on Equity was