Healthcare ETF (XLV) Hits New 52-Week High
For investors seeking momentum, Health Care Select Sector SPDR Fund XLV is probably on radar. The fund just hit a 52-week high and is up 13% from its 52-week low price of $122.59/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 of where it might be headed:
XLV in Focus
Health Care Select Sector SPDR Fund targets the broader healthcare sector. Pharma takes the largest share at 30.3% from a sector look, while healthcare providers and services, healthcare equipment and supplies, biotech and life sciences tools & services have double-digit exposure each. XLV charges 10 bps in annual fees (read: all the Healthcare ETFs here).
Why the Move?
The healthcare sector has been an area to watch lately, given that the strong optimism in the U.S. stock market has started to falter. Healthcare generally outperforms during periods of low growth and high uncertainty. Additionally, investors are in search of cheap stocks for their portfolios after a huge surge in 2023. Healthcare stocks didn’t explode much last year amid the broad market rally.
More Gains Ahead?
Currently, XLV has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
