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

Surprisingly Healthy Returns From Health Care ETFs

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( ETF Expert) -- Although I can’t prove it, 90% of mutual fund managers interviewed on CNBC love energy and technology. They loved the same sectors last year.

And who could blame them? Both sectors are tied to a global economic cycle that has been expanding. What’s more, mutual fund managers are paid to be bullish on stocks.

Worse yet, I can’t say that I haven’t agreed. Some of my largest holdings have been tied to energy and/or emerging market economic expansion. Review my beginning-of-2011 column, “The Economics of Oil Favor Canadian ETFs and Oil Services ETFs.”

With that said, there’s one sector that rarely gets talked about on CNBC these days. The sector? Health care.

Granted, I’m still not a buyer of the segment. There’s still too much uncertainty with the new legislation as well as the Republican opposition. Moreover, earnings guidance appears less sector-driven and more company driven, making it more difficult to use diversified health care ETFs.

Yet I cannot deny that momentum is starting to build for the safer haven, lower profit margin, later-in-the-cycle segment. Nor can I deny that it is one of the very few areas that Morningstar regards as “undervalued.” (Note: I’m not a big fan of undervalued/overvalued nor underbought/overbought.)

Nevertheless, take a look at a ”possible” changing of the guard:

You can listen to the ETF Expert Radio Show "LIVE," via podcast or on your iPod. You can review more ETF Expert features here.

Readers Also Like:

Disclosure Statement: ETF Expert is a Web site that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

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
IBB $341.01 0.00%
IHE $164.39 0.00%
IHI $123.55 0.00%
IYY $104.93 0.00%
IYH $152.11 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs