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
TheStreet Open House

Medical Devices ETF Could Get Election Lift

The election of Republican Scott Brown to a U.S. Senate seat in Massachusetts Tuesday could give a short-term lift to the big-name medical device manufacturers at the top of the iShares Dow Jones US Medical Devices ETF (IHI) roster.

Top medical device firms like Medtronic (MDT), Thermo Fisher Scientific (TMO) and Stryker (SYK) have been under pressure during this young presidency as a major overhaul of the health care industry took shape.

As health care reform, once hallmarked by a government-backed public option, was increasingly slowed by the legislative process and mercurial public opinion, health care stocks rebounded.

Subsector ETF offer investors the unique ability to compare and track narrow slices of the market. While many ETFs currently compete in the health care space, a quick analysis of the iShares line-up offers a revealing look into this sector's trends.

The iShares Dow Jones US Medical Devices ETF (IHI), iShares Dow Jones US Pharmaceuticals ETF (IHE) and iShares Dow Jones US Healthcare Providers ETF (IHF) all fell significantly in 2008 as President Obama's election loomed large and rebounded in 2009 as a massive health care overhaul seemed increasingly improbable.

In 2008, IHI, IHE and IHF fell 36.79%, 14.91% and 43.46%, respectively. As a "public option" became less of a threat to health care providers in 2009, IHF rebounded more than 35%. IHI and IHE also improved 38.49% and 30.06% in 2009, respectively.

Year to date, the controversy surrounding health care reform appears to have strengthened the stocks of top industry names. IHI, IHE and IHF are up 3.49%, 2.53% and 5.76% year to date respectively.

While once-embattled health care providers like UnitedHealth Group (UNH) and WellPoint (WLP) are leading the pack, the companies that comprise IHI's portfolio could also get a jolt from the latest slow-down in health care reform.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs