World’s only two ETFs with positive returns for ten years straight

2023 marked the 10^th straight year of positive returns for the Amundi MSCI Europe Healthcare UCITS ETF, as per recent research by CNBC.

Amundi ETF has more than doubled investors’ money

The health-care fund and the iShares S&P/TSX Capped Consumer Staples Index ETF are now the world’s only two exchange-traded funds that have been in the green in every year over the past decade.

Amundi ETF has returned a whopping 118% to its investors since 2014. Its performance beats the benchmark Stoxx 600 index by over 70%.  

The fund has done consistently well on the back of European pharmaceutical stocks – a defensive growth space that fits the “quality investing” theme, as per Joakim Tabet of Kepler Cheuvreux.  

Note that the Amundi ETF tracks MSCI Europe Healthcare Index, 80% of which is made up of pharma stocks.

What contributed to Amundi ETF’s recent performance

It is worth mentioning here that the Amundi MSCI Europe Healthcare UCITS ETF offered positive returns to its investors even in the three years in which currency headwinds turned the MSCI Europe Health Care Index red.

All in all, what the data suggests is that pharmaceutical products and their demand is not as sensitive to economic cycles as other sectors. Drug regulation and patent protection also deliver greater earnings visibility for those invested in the pharmaceutical giants.

Strength in the Amundi ETF over the past twelve months has been particularly related to Novo Nordisk.

The Danish multinational pharmaceutical firm has been flying high on the back of optimism related to its new weight-loss drug called “Wegovy”. $NVO is up close to 80% versus its 52-week low at writing.

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