Tony Novak profile picture
  "AskTony" column archive        


Most Popular

AskTony Archive

This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

New questions

Submit consumer finance questions at and health insurance questions at

Sponsored by: Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Insurance - America's favorite mini-med insurance  with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

Investing in health care

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: I read that the total U.S. spending on health care will more than double over the next ten years. What is the best way to cash in on this trend as an investor in my IRA with limited funds and without a lot of investing experience?

A: The easiest and cheapest way is to invest in a fund that owns the stocks of the healthcare companies that are included the 500 largest companies in the U.S. The exchange-traded fund that trades under the symbol "XLV" is perfect for this purpose. You can invest with any amount and the fees at 0.25% annually are far less than an average most mutual fund. Due to the fundamental growth trend you mentioned, it is reasonable to expect this sector to outperform the overall investment market over the next several years. More details on opening an account are available at .


More resources: