ETFs Resources and Information

Can Obamacare make investors money?

Obamacare could lead to some opportunities for investors.

Obamacare could lead to some opportunities for investors.

To make a long story short, yes, investors can make money in association with the Affordable Care Act (ACA), also known as Obamacare.

However, the avenues to doing so are not 100 percent clear, given the still-developing nature of the national healthcare reform law and the possibility, while dim, that the entire body of legislation could be repealed by Congress. Yet the U.S. Supreme Court's upholding of the ACA last summer all but guarantees that the American medicinal landscape will be fundamentally changed. And it's within these boundaries that savvy investors can make some coin.

According to some analysts, healthcare-related ETFs might be the least complicated road to take. These baskets of securities and stock holdings are an ideal way to dip your toe in the proverbial water. For example, the Health Care SPDR ETF has shown decent growth, its value rising by approximately 15 percent in the past six months.

Yet before you can start choosing ETFs to buy into, it's important to understand the dynamics at work here. The ACA effectively enshrines the private sector's role in the insurance industry, despite the government's explicit funding of many policies. It's publicly administered by a privately facilitated system. Therefore, the same companies that are entering the exchanges and offering programs have the opportunity to make some big dollars if the marketplaces are popular enough.

There's no sure-fire way to make money in today's volatile market, but it's easy to stay on top of your portfolio risk management by using SmartStops. These tools are essential in a market defined by fluctuating risk levels and unstable geopolitical mechanics. Contact us today or explore our website further to learn more! 

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