Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication, and nearly 40 years in the investment business, we can help select those ETFs that matter and may or may not be repetitive. The result is a more manageable list of issues from which to view and make selections.
There is currently an expanding list of 24 ETFs oriented to the health care sector with more on the way. The following analysis features a fair representation of ETFs available. We believe from these, investors may choose an appropriate ETF to satisfy the best index-based offerings individuals and financial advisors may utilize.
ETFs are based on indices tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called "enhanced" indices that attempt to achieve better performance through more active management of the index.
Where competitive issues exist and/or repetitive issues available at a fee cost saving, we mention those as other choices. New issues are coming to market consistently (especially globally) and sometimes these issues will need to become more seasoned before they may be included at least in our listings.
For traders and investors wishing to hedge, leveraged and inverse issues are available to utilize from ProShares and Direxion and where available these are noted.
XLV (SPDR Healthcare Sector ETF) follows the Health Care Select Sector Index and like most SPDR issues is the granddaddy having been launched in December 1998. The index covers a wide spectrum of the industry from pharmaceuticals, equipment, providers and biotechnology. The expense ratio is .20%. Assets under Management (AUM) equal over $4 billion and average daily trading volume are over 8.7M shares. As of July 2011 the dividend is $.58 making the current yield 1.60% with YTD performance over 12.70%. An alternative choice could include IYH (iShares Dow Jones U.S. Healthcare ETF) follows the index of the same name. The expense ratio is higher at .48%. The constituents are similar to XLV while the YTD return as of July 2011 is 12%. Both ProShares and Direxion Shares maintain leveraged long and short ETFs for hedging or speculation needs.
Data as of July 2011
XLV Top Ten Holdings & Weightings
- Johnson & Johnson (JNJ): 12.94%
- Pfizer Inc (PFE): 11.56%
- Merck & Co Inc (MRK): 7.73%
- Abbott Laboratories (ABT): 4.92%
- UnitedHealth Group Inc (UNH): 4.00%
- Amgen, Inc. (AMGN): 3.85%
- Bristol-Myers Squibb Company (BMY): 3.53%
- Medtronic, Inc. (MDT): 2.94%
- Eli Lilly and Company (LLY): 2.71%
- Baxter International Inc. (BAX): 2.45%
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV