MEDX Hits One Year Milestone

Healthcare stocks are often sensitive to company-specific developments, such as clinical trial results or regulatory decisions. MEDX’s equal-weight structure is designed to help address this by distributing weight more evenly across its holdings.

By keeping individual positions near a target weight — typically around 5% at rebalancing — the fund seeks to reduce reliance on any single company. Over time, this approach aims to spread the impact of stock-specific movements across the broader portfolio. While it does not eliminate volatility, it may help moderate concentration risk.

Over its first year, MEDX drew exposure from multiple segments within healthcare. Holdings such as Novo Nordisk, Pfizer, and Medtronic provided access to pharmaceuticals and medical technology. Larger, diversified names like Johnson & Johnson and Merck & Co. were also included, potentially contributing a measure of stability during periods of market uncertainty.

This multi-segment exposure reflects a strategy designed to balance growth-oriented and more established healthcare companies.

A core feature of MEDX is its quarterly rebalancing process. During these periods, positions that have grown beyond their target weights are trimmed, while those that have lagged are increased.

This rules-based approach enforces discipline and helps maintain the fund’s equal-weight structure over time, aiming to prevent overconcentration in short-term outperformers.

Geographic diversification is another component of the MEDX approach. The portfolio includes a meaningful allocation to U.S. equities alongside exposure to international markets. Holdings such as Sanofi highlight the fund’s reach beyond a single region, offering access to multiple regulatory environments and healthcare systems.

At launch, MEDX was primarily defined by its structure and methodology. With a full year of performance now available, investors can begin to assess how the strategy has behaved through different market conditions.

The first year of MEDX underscores a key principle: structure matters. Equal weighting does not remove risk, but it aims to distribute it more evenly across the sector. For investors considering healthcare exposure, this first year provides an initial look at how such an approach plays out in practice.

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