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Health Care Select Sector SPDR ETF Message Board

  • uscarolina_2000 uscarolina_2000 Jan 7, 2012 12:34 PM Flag

    Is this ETF considered an inexpensive value at the current price?

    I'm not a sophisticated investor to be able to determine such things. I apologize if this is a boring question. Objective replies would be very much appreciated.


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    • If you're a trader none of what I have to say will matter to you, as traders buy solely on price.

      However, as an investor, I have to say the expected return of this ETF - based on its past performance - is only about 3.43% compounded annually.

      The ETF's expected volatility as measured by its geometric standard deviation is 13.20%.

      This information is contingent upon the premise that the ETF's returns are normally distributed.

      So, you're going a very low expected return for a below average volatility, compared to the over all market.

    • Not expensive, but concentrated. Comprised of the below large cap stocks, which pay decent dividends. Top 10 holdings = 60% of fund, very concentrated. All are solid companies..

      Johnson & Johnson Common Stock JNJ 13.30
      Pfizer, Inc. Common Stock PFE 12.35
      Merck & Company, Inc. Common St MRK 8.53
      Abbott Laboratories Common Stoc ABT 5.51
      Bristol-Myers Squibb Company Co BMY 4.46
      UnitedHealth Group Incorporated UNH 4.04
      Amgen Inc. AMGN 3.78
      Eli Lilly and Company Common St LLY 3.14
      Medtronic Inc. Common Stock MDT 3.01
      Gilead Sciences, Inc. GILD 2.28

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