Earn Your Leisure Podcast: Episode Summary Title: Top Healthcare Stocks & ETFs To Watch
Release Date: May 1, 2025
Hosts: Rashad Bilal and Troy Millings

Introduction

In this episode of Earn Your Leisure, Rashad Bilal and Troy Millings delve into the intricacies of healthcare investments, focusing on the top stocks and Exchange-Traded Funds (ETFs) that investors should monitor. The conversation offers a blend of financial insights and pop culture references, aligning with the podcast’s unique approach to business education.

Key Healthcare ETFs and Stocks

The hosts begin by discussing the importance of selecting the right tools for healthcare investment. Chris emphasizes the significance of maintaining focus on existing portfolio holdings to avoid unnecessary diversification. He states, “[...] too often times as men we look for the new exciting thing opposed to the thing that's working” ([00:10]).

Brian shares his strategy, highlighting his preference for Vanguard’s VHT and Spider ETFs, alongside sector-specific ETFs like XLK and XLY. He advises investors to examine the largest allocations within these ETFs to identify strong performers. “For XLV, you're gonna, I mean for DHC as well, Lily is usually number one. And number two was UnitedHealth” ([01:57]).

Vertical Integration in Healthcare

The discussion shifts to CVS Health, which Brian describes as a vertically integrated giant in the healthcare sector. He explains, “They have vertical integration, which is very unique in the sense that they have insurance. They, they bought Aetna, so they have the insurance, Right. They have prescription delivery and they have direct patient care” ([02:40]). This integration allows CVS to offer comprehensive services, setting it apart from competitors like UnitedHealth, which primarily focuses on health insurance.

Amazon's Disruptive Potential

A significant portion of the conversation centers on Amazon's foray into the healthcare industry. Brian posits that Amazon’s extensive retail network and advancements in artificial intelligence (AI) position it as a formidable player capable of disrupting traditional healthcare models. “If Amazon has the agentic AI in the healthcare field with the direct to consumer retail space, I think they become the number two in the healthcare ETF funds going forward” ([04:30]).

Chris questions the inclusion of both CVS and Amazon in the same category, to which Brian clarifies that Amazon is a "wild card" due to its innovative approach and market momentum. He highlights Amazon’s year-to-date growth of 46%, despite market challenges, underscoring its resilience and potential for long-term dominance.

Innovation and Generational Companies

The hosts discuss what makes a company generational, citing Amazon alongside Apple, Nvidia, and Microsoft as examples. Brian emphasizes Amazon’s continuous innovation and diversification across industries as key factors driving its sustained success. “If they enter this from an AI standpoint with the lead of having cloud, having infrastructure, having their own GPUs, they're going to be doing that for a reason” ([06:09]).

He also touches upon the broader trend of major tech companies racing to out-innovate each other, ensuring their relevance and market leadership in various sectors, including healthcare.

Conclusion

The episode wraps up with an affirmation of the importance of focusing on strong, established companies while keeping an eye on emerging disruptors like Amazon. The hosts encourage listeners to stay informed about market trends and to strategically invest in companies that demonstrate sustained growth and innovation.

Notable Quotes:

• Chris: “[...] too often times as men we look for the new exciting thing opposed to the thing that's working” ([00:10])
• Brian: “If Amazon has the agentic AI in the healthcare field with the direct to consumer retail space, I think they become the number two in the healthcare ETF funds going forward” ([04:30])
• Brian: “They have vertical integration, which is very unique in the sense that they have insurance. They, they bought Aetna, so they have the insurance, Right. They have prescription delivery and they have direct patient care” ([02:40])

This episode provides a comprehensive overview of the current landscape in healthcare investments, offering listeners actionable insights into selecting strong ETFs and identifying potential disruptors in the market.