Oprah Sent This Stock Soaring Higher
With the holidays coming up, I can’t help but think of all the delicious food and desserts that are certain to be out in front of me. It’s hard not to over eat! But along with all of the great eats comes the dreaded weight gain.
Many people will turn to some sort of product to help them lose the unwanted weight.
Amazingly, Americans spend $40 billion a year on weight-loss programs and products. What’s more, around 84 million Americans suffer from obesity.
Needless to say, we are a nation that likes to indulge. Then we look for a magic pill to help with dieting and weight loss.
With all that spending, I must ask is it possible to make money by investing in weight-loss products?
Oprah’s Investment In Weight-Loss Products…
Earlier this week, Oprah announced she had agreed to purchase a 10% stake in Weight Watchers International $WTW and had signed a deal to promote the diet company and its services.
Oprah is a marketing goldmine for a stock like Weight Watchers. Not surprisingly, stock prices doubled overnight and rose another 30% on Tuesday!
Let’s take a look at some ETFs with exposure to weight-loss companies to get in on the action.
Here Are 2 ETFs With Exposure To Weight-Loss Products…
First, let’s focus on Weight Watchers.
The ETF with the biggest percentage of the holdings devoted to $WTW is Guggenheim Insider Sentiment ETF $NFO. As the name suggests, this ETF tracks a group of stocks with favorable corporate insider buying trends.
I guess we know why all of the insiders were buying the stock. A deal with Oprah was sure to boost investor interest. This is a perfect example of how it can pay to keep track of stocks with strong insider buying.
But it’s not really a true investment in weight-loss products.
The most direct way to invest in a weight loss product is a retail ETF like Market Vectors Retail ETF $RTH. Remember, these are consumer products that are sold through retailers like pharmacies and vitamin shops.
The Best ETFs For Exposure To Weight-Loss Products…
When it gets right down to it, drug companies are the best way to invest in weight loss products. Americans love taking a magic pill to help lose weight or deal with the nasty side effects of being overweight such as diabetes, high cholesterol, and blood pressure.
Market Vectors Pharmaceutical ETF $PPH provides exposure to the largest pharmaceutical giants in the world. This ETF has 5.17% of its holdings invested in Novo-Nordisk $NVO, a global healthcare company that is on the forefront on the war against obesity.
PPH has a current price of $63.46. This ETF pays a solid dividend yield of 1.99%. It has an expense ratio of 0.35%. And it has $323.97 million in assets under management.
Needless to say, there are lots of ways to use ETFs to invest in weight-loss products.
Good Investing,
Corey Williams
Note: Corey Williams writes and edits ETFTradingResearch.com. Sign up for our free ETF reports and free e-letter at http://www.etftradingresearch.com/free-sign-up. We’re devoted to helping you make more money from ETFs.
Category: What's Going On?
