We're not ranking these ETFs favoring one over another so don't let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it's not our intention to recommend one over another.
ETFs are based on indexes tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called "enhanced" indexes 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. The fund was launched in December 1998. The expense ratio is .20%. Assets under Management (AUM) equal over $3.4 billion and average daily trading volume are over 15M shares. As of late October 2011 the dividend is $.66 making the current yield 2.02% with YTD performance over 6.60%.
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 5.43%. Both ProShares and Direxion Shares maintain leveraged long and short ETFs for hedging or speculation needs. Data as of October 2011 XLV Top Ten Holdings & Weightings
- Johnson & Johnson (JNJ): 13.97%
- Pfizer Inc (PFE): 11.04%
- Merck & Co Inc (MRK): 8.06%
- Abbott Laboratories (ABT): 5.40%
- Bristol-Myers Squibb Company (BMY): 4.31%
- Amgen Inc (AMGN): 4.06%
- UnitedHealth Group Inc (UNH): 4.00%
- Eli Lilly and Company (LLY): 3.01%
- Medtronic, Inc. (MDT): 2.82%
- Baxter International Inc. (BAX): 2.59%