Milliman Healthcare Inflation Plus ETF (MHIP)

Overview

MHIP is dedicated to the preservation and enhancement of purchasing power in the face of escalating medical costs. Utilizing proprietary actuarial data and quantitative modeling, the company conducts fund analysis that draws from an extensive dataset containing real healthcare claims. This dataset encompasses approximately 35 million insured individuals, enabling MHIP to effectively project healthcare inflation by identifying trends in both medical and pharmacy expenses. The investment strategy is diversified and includes equities and fixed income securities that span the entire healthcare supply chain, along with inflation-hedging instruments such as commodities, TIPS (Treasury Inflation-Protected Securities), and Treasury bonds.

MHIP employs a monthly rebalancing approach based on a quantitative model that responds to shifts in U.S. healthcare cost inflation. During periods of increased inflation, the strategy increases its exposure to equities and commodities, while adjusting toward debt instruments when inflation rates are lower. Additionally, MHIP may utilize derivatives including swaps, options, and futures contracts, as well as exchange-traded funds (ETFs) to further enhance its investment approach.

Products and Services

• Equities: Investments in stocks from companies along the healthcare supply chain aimed at capturing growth in the sector while navigating inflationary pressures.
• Fixed Income Securities: A diverse array of bonds that provide stable returns and help mitigate risk, particularly during periods of low inflation.
• Inflation-Hedging Instruments: This includes commodities, TIPS, and Treasury bonds designed to protect investments from the eroding effects of inflation.
• Derivatives: Use of financial instruments such as swaps, options, and futures to manage risk and enhance returns in volatile markets.
• Exchange-Traded Funds (ETFs): Investment in ETFs allows for effective diversification and exposure to broader sectors within healthcare while also offering liquidity and lower costs.