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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) - Get SPDR S&P Pharmaceuticals ETF Report

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 Johnson & Johnson Report



(PFE) - Get Pfizer Inc. Report


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(MRK) - Get Merck & Co., Inc. Report


The biotech Spyders' top holdings are





(AMGN) - Get Amgen Inc. Report


Gilead Sciences

(GILD) - Get Gilead Sciences, Inc. 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.

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.