U.S. Markets open in 6 hrs 24 mins

Healthcare ETF (FXH) Hits New 52-Week High

Sweta Killa
Is (WM) Outperforming Other Business Services Stocks This Year?

For investors seeking momentum, First Trust Health Care AlphaDEX Fund FXH is probably on radar now. The fund just hit a 52-week high, and is up about 23% from its 52-week low price of $63.96/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

FXH in Focus    

This fund targets the healthcare segment of the broad U.S. market and uses the AlphaDEX methodology to select stocks from the Russell 1000 index. The approach results in a basket of 77 securities, which are widely spread across components, with none holding more than 2.65% of assets. The product has key holdings in health care providers & services, health care equipment & supplies    and biotechnology. It charges investors 62 basis points a year in fees (see: all the Healthcare ETFs here).

Why the Move?

The healthcare space has been an area to watch lately given that it is among the best performing sectors this year driven by its non-cyclical nature, which provides a defensive tilt to the portfolio in a turbulent market. Additionally, rising M&A, faster drug approval and positive regulatory backdrop added to the strength.

More Gains Ahead?

Currently, FXH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FT-HEALTH CARE (FXH): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report