MHIP targets healthcare inflation plus additional returns by investing in companies positioned to benefit from rising medical costs. The fund aims to outpace general healthcare spending growth, which has historically exceeded CPI by 2-3% annually.
How It Works
The ETF uses Milliman's actuarial expertise to identify firms with pricing power in healthcare's most inflation-resistant segments — medical devices, specialty pharma, and healthcare services. Holdings are weighted by their historical ability to pass through cost increases and maintain margins during inflationary periods. The portfolio rebalances quarterly based on pricing data and Medicare reimbursement trends.
Key Features
- First ETF explicitly designed to exceed healthcare inflation rather than just track healthcare stocks
- Leverages Milliman's deep actuarial data on medical cost trends unavailable to most investors
- Zero expense ratio suggests this is a loss-leader to showcase Milliman's healthcare analytics
Risks
- Drug pricing reform could cap the very pricing power this strategy depends on, potentially crushing returns
- Brand new fund with no track record — the healthcare inflation-plus thesis is completely untested
- Concentrated bets on pricing power stocks could underperform if healthcare deflation ever materializes
Who Should Own This
Perfect for retirees worried about medical costs outpacing their portfolio returns, or anyone funding future healthcare liabilities. Also appeals to investors who believe healthcare's 40-year inflation streak will continue despite political pressure. Consider 5-10% allocation as an inflation hedge specifically for medical expenses.