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Health Care ETFs Prescribe New Highs


Price appreciation just keeps on coming for health care exchange traded funds. Twenty ETFs have hit new all-time highs in Thursday’s session and eight are health care-related.

There are two leveraged ETFs on the list of Thursday’s new all-time highs and one is the Direxion Daily Healthcare Bull 3x Shares (CURE) . Even when excluding CURE and the new Fidelity MSCI Health Care Index ETF (FHLC) , 30% of the ETFs hitting new highs today are health care funds.

The ongoing health care sector rally has helped the Health Care Select Sector SPDR (XLV) top the Consumer Discretionary Select Sector SPDR (XLY) as the best of the nine sector SDPR ETFs this year. Additionally, XLV is just $83 million behind the Energy Select Sector SPDR (XLE) for the third spot among U.S. sector ETFs as ranked by size. [Bronze Medal Battle for Sector ETF Supremacy]

Biotech ETFs cannot be left out of the conversation. The iShares Nasdaq Biotechnology ETF (IBB) , the largest biotech ETF by assets, also hit a new high today, garnering upside calls along the way.

Biotechnology (IBB) just scored a new all-time high – this is a break-out from a 2 month consolidation phase. A target of 231 is visible.

— Ralph Acampora CMT (@Ralph_Acampora) November 21, 2013


The biotech ETF ($IBB) is really setting up for a nice breakout if it can clear $214.

— Bespoke (@bespokeinvest) November 21, 2013


Also on the list of Thursday’s new highs is the First Trust Health Care AlphaDEX Fund (FXH), which uses a smart beta approach. That recipe has worked as FXH is now up more than 43% this year. [8 Overlooked Smart Beta ETFs]

Of the broad market ETFs hitting new highs Thursday, several have significant weights to the health care sector. The PowerShares Dynamic Large Cap Value Portfolio (PWV) has a 15.4% allocation to the sector, which is overweight by 230 basis points compared to the S&P 500’s health care weight. The Guggenheim S&P 500 Pure Value ETF (RPV) , up 41.1% and also in the new all-time high club, has a weight of nearly 12% to the healthcare sector.