This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here Ratings: Funds With Health Care Exposure

With a new Democratic majority in Congress, speculation about the investment implications of the party's agenda is rampant.

The early commentaries seem to agree that the Democratic leadership will be setting its sights on health care -- and the pharmaceutical industry in particular.

So Ratings looked at closed-end and exchange-traded funds with heavy exposure to the group.

The table below lists the top 10 ranked by exposure to the health care sector, based on portfolio holdings data as of Oct. 31. Each closed-end fund or ETF has at least 25% of its assets in health care.

The Dems' early agenda is likely to include scrutiny of big pharma's pricing of drugs that are still under patent.

That would not be good for the SPDR Pharmaceuticals (XPH) exchange-traded fund, which tops the list of closed-end funds in terms of health care exposure.

The top three holdings of both the health care and pharmaceuticals Spyders are Johnson & Johnson (JNJ - Get Report), Pfizer (PFE - Get Report) and Merck (MRK - Get Report).

The biotech Spyders' top holdings are Genentech (DNA), Amgen (AMGN - Get Report) and Gilead Sciences (GILD - Get Report).

Still up in the air, however, is whether a liberal agenda will help or hurt the hospital sector.

So the jury is still out on the Morgan Stanley Municipal Opportunities Trust closed-end funds, which invest heavily in tax-exempt bonds and notes issued by hospitals and health facilities. New legislation could either help or hurt the credit ratings of these entities.

10 Closed-End Funds, ETFs With Over 25% of Holdings in Health Care
Name Ticker Health Care Exposure
SPDR Pharmaceuticals XPH 99.99%
SPDR Biotech XBI 99.95
SPDR Health Care XLV 99.91
iShares S&P Global Healthcare IXJ 99.72
Morgan Stanley Muni Inc Op III OIC 56.00
Morgan Stanley Muni Inc Op II OIB 53.00
Morgan Stanley Muni Inc Op OIA 42.00
PowerShares FTSE RAFI Health Care PRFH 36.79
Defined Strategy Fund DSF 28.04
Pioneer Tax Advantage Balanced Tr PBF 25.80
*Based on latest available data as of Oct. 31, 2006

Prior to joining Ratings, Widows was senior product manager for quantitative analytics at Thomson Financial. After receiving an M.B.A. from Santa Clara University in California, his career included development of investment information systems at data firms, including the Lipper division of Reuters. His international experience includes assignments in the U.K. and East Asia.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
XPH $40.84 -3.50%
AMGN $154.17 -1.40%
GILD $85.60 -1.80%
JNJ $112.23 -0.41%
OIA $7.69 0.26%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs