The world is getting older and quickly. The global population aged 65 and over is growing faster than all other age groups.
According to the WHO, by 2050, one in six people in the world will be over age 65 (16%), up from one in 11 in 2019 (9%).
The stats are even higher in Europe and North America, where the WHO estimates that one in four people could be over 65 in 2050.
This is expected to lead to growing demand for healthcare services over the next three decades, which I feel bodes well for a number of companies in the sector.
In light of this, I think investing in the healthcare sector with a long term view could be a smart move.
But where should you invest your money? Here are two ASX healthcare shares that I think would be great long term options for investors:
iShares Global Healthcare ETF (ASX: IXJ)
If you'd like to invest in a wide range of healthcare shares then you might want to consider putting money into the iShares Global Healthcare fund. As its name implies, this exchange traded fund (ETF) gives investors exposure to many of the biggest healthcare companies across the globe. This includes the likes of AstraZeneca, CSL Ltd (ASX: CSL), Johnson & Johnson, Merck & Co, Sanofi, and United Health. Given the aforementioned ageing population tailwind, I believe these healthcare shares are collectively well-positioned for growth over the next decade. This could mean the iShares Global Healthcare ETF generates strong returns for investors.
Ramsay Health Care Limited (ASX: RHC)
Another healthcare share that I think would be a fantastic long term option is Ramsay Health Care. As the global population ages, I expect demand for its sprawling global network of private hospitals to increase substantially. I believe this will put the company in a position to deliver solid earnings growth over the long term. Another positive is the company's history of supporting its growth with acquisitions. I suspect this will remain the case over the next decade or two.
