|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||168.78 - 170.17|
|52 Week Range||149.00 - 203.31|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.87|
|Expense Ratio (net)||0.43%|
Tom Lydon, ETFTrends.com, and Dan Wiener, Adviser Investments, join 'ETF Edge' to discuss their thoughts on the health care sector and the ETFs they're watching.
May jobs data came in extremely downbeat in the United States. This should help the Fed remain dovish in the coming days and boost these ETFs.
Citigroup (NYSE:C) just slashed Apple's (NASDAQ:AAPL) iPhone sales in half as a result of the U.S./China trade war. It seems more and more companies are getting caught in the crossfire. Whether buying goods from China or trying to sell products to China, navigating this trade war is a real difficulty.Source: Shutterstock Meanwhile, investors of all stripes are trying to figure out how to best insulate their portfolios from what's quickly becoming a global economic contagion.Is it even possible to hide from this trade war in which no one wins? Probably not. InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, I've got three ideas for minimizing your exposure. * 7 Stocks to Buy for June Buy Service-Oriented StocksThe argument for buying service-oriented stocks, especially those focused on the domestic market, is that they have far less exposure to trade policy. Naturally, most people immediately think of smaller companies, but that doesn't have to be the case. Sectors that come to mind include healthcare, utilities, software, real estate, etc. For example, although Amazon's (NASDAQ:AMZN) ecommerce business would be affected by the trade war, its AWS segment, which generated $2.2 billion of operating income in the quarter ended March 31 from $7.7 billion in revenue, wouldn't face nearly the same tariff concerns. In Q1 2019, its North American operating segment generated about the same amount of operating income from almost five times as much revenue. Although Amazon's doing a lot more third-party selling these days, whether its Amazon or the third party that owns the product, the trade war isn't helping their businesses. So, Amazon's a good, if not great way to minimize the trade war headwinds. Another possibility is to buy healthcare businesses that have a strong services component like hospital operators, healthcare plan providers, retirement and assisted living facilities, etc. In mid-April, I suggested that those who had the stomach start buying UnitedHealth (NYSE:UNH) stock despite the calls for "Medicare for All" because whatever the future holds for the provider of healthcare benefits and services, its stock has got to be worth more than $220. UNH stock bottomed in mid-April and has rebounded by more than 10% in the six weeks since. With the trade war hanging over our heads, a stock like UNH wouldn't be half bad. Alternatively, if you don't want to go the stock selection route, a good option would be to buy iShares Healthcare Providers ETF (NYSEARCA:IHF), a collection of stocks targeting domestic healthcare services companies like UnitedHealth, which is the ETFs number one holding with a weighting of 22.94%. Boring but ConsistentWith an ongoing trade war possibly leading to a recession, the best stocks to buy in this situation might be the most boring. Stocks that deliver consistent dividends or distributions and aren't necessarily affected by what's happening on the trade front. Two sectors that meet these criteria are real estate and utilities. Real estate, especially if you're investing in multi-family residential, is an area that's not going to suffer nearly as much from a downturn because we all have to live somewhere. Utilities benefit from the same scenario; we all need to pay our bills if we want to keep the lights on and the home appliances and electronics running smoothly. That's why Elizabeth Warren popularized the 50/20/30 budgeting rule, which puts aside 50% of your after-tax income for bills that you absolutely must pay. Rather than pick the real estate or utilities stocks to own, it would be much easier to buy two inexpensive ETFs to meet your needs. I'd go with iShares Residential Real Estate ETF (NYSEARCA:REZ) for the real estate play. Approximately 49% of its net assets are invested in residential REITs with the remainder in REITs that own retirement homes, storage facilities and other specialized real estate assets. It charges 0.48% annually. As for utilities, I'd go with Vanguard Utilities ETF (NYSEARCA:VPU). It's inexpensive at 0.10% and only has 68 holdings with its top ten accounting for 53% of the ETFs $4.8 billion in total net assets. Park Your Money If you're freaked out by the consequences of a lingering trade war, you can always move your portfolio out of equities and into a certificate of deposit or high-yield savings account until the skirmish is settled. Or, you can buy into the MNA IQ Merger Arbitrage ETF (NYSEARCA:MNA), an expensive ETF at 0.78% annually that's worth every penny. I first suggested the ETF in September 2017. Utilizing a directional hedge fund strategy, it has very little correlation to either the equity or fixed income markets, making it the perfect fund to own when both types of securities are losing their value. It's not going to make you rich, but in my opinion, it will protect your downside better than most bond funds would. Alternatively, you could invest in one of the many special purpose acquisition companies (SPAC) currently listed, preferably one that's gone public in the last 3-6 months. That's because SPAC's are blind pools of money raised to use for an acquisition at some point in the 21 months after an IPO. The funds are placed in escrow and interest is paid until a target company is found to acquire. If a target's not found, the funds are returned to investors with interest. It's an excellent way to park your funds with minimal downside and potential upside should an acquisition come to pass before the 21-month deadline. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post 3 Ways to Minimize Your Exposure to the U.S.-China Trade War appeared first on InvestorPlace.
As has been widely documented, healthcare stocks and the related exchange traded funds are struggling this year and the iShares U.S. Healthcare Providers ETF (IHF) has been one of the offenders. IHF is a traditional index fund that targets U.S. equities in the healthcare providers sector. IHF has been dogged this year by speculation that Medicare For All could become a reality if Democrats win the White House in 2020.
While equities roiled over the latest developments in the trade negotiations between the U.S. and China, the healthcare sector exchange traded funds were a stalwart bastion in the stormy markets. "The old saying people would say [is] "don't just stand there, do something." When volatility picks up, you do just the opposite — "don't just do something, stand there." But, while you're standing there, get a list of the stocks you like and the levels you like them at," Matt Maley, equity strategist at Miller Tabak, told CNBC. Tabak highlighted the relative stability in UnitedHealth (UNH), the country’s largest publicly traded health insurer, during the volatile market conditions.
The healthcare sector, the second-largest sector in the S&P 500, is the worst-performing group in the U.S. this year and healthcare providers and insurers are the primary drags on the broad healthcare ...
The healthcare sector is in the midst of a stunning first-to-worst act. The Health Care Select Sector SPDR ETF (XLV) , the largest exchange traded fund (ETF) dedicated to the sector, is clinging to a modest year-to-date gain while some healthcare industry ETFs are performing much worse. For example, the iShares U.S. Healthcare Providers ETF (IHF) is lower by 5.38% year-to-date and that fund's losses have recently been accelerating.
UnitedHealth Group reported robust first-quarter 2019 results. The company breezed past the Zacks Consensus Estimate on both earnings and revenues and raised its full-year forecast.
Healthcare sector-specific ETFs took a blow Friday after the U.S. Congress threatened legislative action on rising costs of prescription drugs and the Trump administration challenged former President Barack ...
This article is a part of InvestorPlace's Best ETFs for 2019 contest. Todd Shriber's pick for the contest is the iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF).The healthcare sector, the second-largest sector weight in the S&P 500, performed a best-to-worst act in the first quarter of 2019. Healthcare was the best-performing sector in the S&P 500 last year. This year, the opposite is true.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Health Care Select Sector SPDR (NYSEARCA:XLV), the largest healthcare exchange traded fund (ETF) by assets, is up 7% year-to-date compared to a gain of 12.20% for the S&P 500. The iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF), my pick for this year's best ETFs contest, is an even more egregious laggard with a year-to-date loss of 1%. What Happened to the IHF ETF?Excuses are not the objective of this piece, but looking back at what has plagued IHF in the first quarter can be instructive. With the exception of the "growth-ier" areas of healthcare, namely biotechnology and medical devices, the sector, as noted above, has been a laggard to start 2019.Perhaps some of the sector's laggard status to start 2019 is investors taking profits in the group following a solid 2018 or market participants moving into more exciting sectors, such as technology. With IHF, however, the reasons for the fund's first-quarter struggles are more easily identified.Entering this year, my thesis for IHF was that the fund could benefit from the Democrats controlling the House of Representatives. As is often noted, healthcare, perhaps more than any other sector, can benefit or be hampered by political wranglings on Capitol Hill.This is not political commentary, but the fact that so many of the Democrat contenders for that party's 2020 presidential nomination favor Medicare For All has been a significant drag on IHF stock. IHF holds 47 stocks, but just two -- UnitedHealth (NYSE:UNH) and Anthem (NYSE:ANTM) -- really drive IHF's price action because that duo combines for over 36% of the fund's weight. * 10 F-Rated Stocks to Sell in This Narrow Market Fortunately, shares of Anthem are up nearly 13% this year because UnitedHealth stock is lower by nearly 1%, making that stock one of the worst-performing members of the Dow Jones Industrial Average. The impact of Medicare For All speculation has been palpable, particularly for UnitedHealth.Muddying the waters for stocks like UnitedHealth and funds such as IHF is talk among some analysts that although Wall Street does not expect Medicare For All to happen, investors should not expect a snapback rally in managed care stocks once it becomes apparent that single-payer healthcare will not take hold in the U.S."In our view, the bill has no chance of passing the [Republican]-controlled Senate and probably little chance even in the [Democrat]-controlled House given Speaker Pelosi's apparent ambivalence," JPMorgan analyst Gary Taylor said in a recent note, reports MarketWatch.However, Taylor notes the Medicare For All Debate is weighing on the healthcare sector and making investors "wary" of being involved with the group. Bottom Line on IHFYes, IHF's YTD loss is small at this point, but there is some risk here, particularly if the fund falls below $165 on heavy volume. At this point in the year, investors have only pulled $4 million from IHF, which could be a sign some are waiting for the Medicare For All debate to blow over.Knowing exactly when that debate will be quashed is another matter altogether. Investors considering IHF over the near-term should monitor shares of UnitedHealth for clues about the near-term validity of the IHF thesis.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks With Key Products That Face an Uncertain Future * 7 SaaS Stocks to Buy for Long-Term Gains * 5 Semiconductor Stocks That Are Scorching Hot Buys Compare Brokers The post Best ETFs of 2019: The iShares U.S. Healthcare Providers ETF Is Suffering appeared first on InvestorPlace.
Healthcare stocks and sector-related ETFs were among the best performing segments of the markets Wednesday, with CVS Health Corp (NYSE: CVS) rallying on a bullish call out from Bernstein analysts. Among ...
Shares of healthcare providers stocks and the iShares U.S. Healthcare Providers ETF (IHF) , the largest exchange traded fund dedicated to this corner of the healthcare sector, have recently been drubbed as market participants worry about the specter of Medicare For All. Many of the most visible Democratic contenders for that party's 2020 presidential nomination are embracing Medicare For All. “We raised our fair value estimate for UnitedHealth to $300 per share from $218, largely driven by our moat upgrade and more optimistic longer-term assumptions for the franchise,” said Morningstar in a recent note.
In financial markets, things can change in a heartbeat. And while it may not have happened in a heartbeat this time, the healthcare sector is one of the worst-performing groups in the S&P 500 this year while being the leading sector in the benchmark U.S. equity gauge in 2018.That does not mean healthcare stocks and exchange-traded funds (ETFs) have been delivering dismal showings. The Health Care Select Sector SPDR (NYSEARCA:XLV), the largest healthcare ETF by assets, is up 11.8% year-to-date compared to 11.4% for the S&P 500.While traditional healthcare ETFs are not delivering jaw-dropping performances in the first quarter, there are some encouraging signs from more focused healthcare ETFs, including biotechnology funds, among others.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Chinese Stocks to Buy for the 2019 Rebound For investors, the good news is there are plenty of cost-effective options among traditional healthcare ETFs with rebound potential as 2019 moves forward. Additionally, there are plenty of compelling avenues for investors looking for thematic, fast-growing growing exposure within the normally defensive sector. iShares U.S. Medical Devices ETF (IHI)Expense Ratio: 0.43% per year, or $43 on a $10,000 investment.Up nearly 16% year-to-date, the iShares U.S. Medical Devices ETF (NYSEARCA:IHI) is extending a run of out-performance of traditional healthcare ETFs. The largest ETF dedicated to medical device makers beat the S&P 500 in five of the six years spanning 2013 through 2018, and IHI topped the S&P 500 Health Care Index in four of those six years.Abbott Laboratories (NYSE:ABT), Danaher (NYSE:DHR) and Boston Scientific (NYSE:BSX) are among the well-known names in IHI.Stock strategist Matt Maley said in a CNBC interview "that his top picks in the sector are Boston Scientific, Danaher and Abbott Laboratories. Danaher and Abbott's stocks both hit 52-week highs on (last) Friday."IHI hit an all-time high on the first two trading days of March, an impressive feat when considering broader healthcare ETFs often lag in the third month of the year. KraneShares MSCI All China Health Care Index ETF (KURE)Expense Ratio: 0.82%Investors should not exclusively focus on domestic healthcare ETFs, not when the sector has compelling growth opportunities in other major markets, such as China. The KraneShares MSCI All China Health Care Index ETF (NYSEARCA:KURE) is one fund to use to tap China's fast-growing healthcare sector.KURE, which follows the MSCI China All Shares Health Care 10/40 Index, is just over a year old. Importantly, this healthcare ETF is starting to perk up. After surging nearly 16% in February, KURE is higher by more than 25% this year, and the fundamentals back that ascent. * 7 March Madness Stocks to Consider for the Big Dance "China is the second largest healthcare market globally with total healthcare expenditure reaching $558 billion in 2016, a number projected to reach $1.1 trillion by 2020," according to KraneShares. "There is still opportunity for considerable growth in China's healthcare market with per capita health spending at just $398, compared to an average of over $6,500 for the world's top eight healthcare markets in terms of per capita expenditure." Invesco DWA Healthcare Momentum ETF (PTH)Expense Ratio: 0.6%Some sector funds are rooted in momentum strategies, and the Invesco DWA Healthcare Momentum ETF(NASDAQ:PTH) is an example of healthcare ETF that relies on the momentum factor. PTH tracks the Dorsey Wright Healthcare Technical Leaders Index.That "index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index," according to Invesco.Regardless of sector, the momentum factor is heavily rooted in the idea that stocks that have already appreciated significantly can continue doing so. Hence, it is not surprising that PTH allocates about 35% of its weight to healthcare equipment and medical device companies. Fueling this healthcare ETF's momentum is a considerable allocation to smaller stock as large caps represent just 37% of PTH's roster. VanEck Vectors Generic Drugs ETF (GNRX)Expense Ratio: 0.55%Often overlooked among healthcare ETFs, the VanEck Vectors Generic Drugs ETF (NASDAQ:GNRX) is just over three years old and was the first ETF dedicated to makers of generic pharmaceuticals. The $3.3 million GNRX follows the Indxx Global Generics & New Pharma Index.That benchmark "is intended to track the overall performance of companies that derive a significant proportion of their revenues or that have the potential to derive a significant proportion of their revenues from the generic drug industry, or that have a primary business focus on the generic drug industry," according to VanEck. * 9 Best Stocks to Buy on U.S.-China Trade Optimism GNRX is a global healthcare ETF with exposure to a dozen countries. While the U.S. accounts for 37% of the fund's weight, GNRX features significant emerging markets exposure via India and China, among others. iShares U.S. Healthcare Providers ETF (IHF)Expense Ratio: 0.43%The iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF) has been previously highlighted in this space and has been solid though not spectacular this year. Perhaps more than any other sector, healthcare is affected by politics, and politicians that are angling for the White House in 2020 are really hindering IHF this year.Regardless of how one votes, recent price action in IHF confirms the healthcare ETF's holdings do not like the idea of Medicare For All, an idea being supported by several Democrats seeking their party's 2020 presidential nomination. Making matters worse, some politicians recently cheered the declines experienced by IHF components.Cooler heads are likely to prevail and some market observers are endorsing the idea of using the dip to buy some of the names residing in IHF. Fidelity MSCI Health Care Index ETF (FHLC)Expense Ratio: 0.084%For long-term investors who want a basic approach to healthcare ETFs, the Fidelity MSCI Health Care Index ETF (NYSEARCA:FHLC) is the name to consider. While the arena of standard healthcare ETFs is chock full of worthy competitors, FHLC stands out for a simple reason: it is, at least for the time being, the cheapest healthcare ETF in the U.S.What investors get with a healthcare ETF like FHLC is heavy exposure to blue-chip pharmaceuticals stocks, medical equipment makers and large-cap biotechnology companies. * 7 IPOs to Get Excited for in 2019 Every basis point saved in fees matters to long-term investors, which increases the allure of FHLC. Plus, Fidelity clients can transact in this and other Fidelity ETFs commission-free. SPDR S&P Health Care Equipment ETF (XHE)Expense Ratio: 0.35%The SPDR S&P Health Care Equipment ETF (NYSEARCA:XHE) is an equal-weight rival to the aforementioned IHI. Equal-weight funds, particularly sector products, often tilt toward to smaller stocks, which can be an advantage of in a high-growth segment such as medical equipment.The $619 million XHE has a weighted average market capitalization of $15.6 billion, putting it at the lower end of large-cap territory. None of this healthcare ETF's 69 holdings exceed weights of 2.6%. While the cap-weighted IHI is beating the equal-weight XHE this year, XHE is beating its rival by nearly 700 basis points over the past 36 months.Underscoring the notion that medical equipment is a growth segment, XHE has a price-to-earnings ratio of 32.54, implying a significant premium to traditional healthcare ETFs.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post The 7 Best Healthcare ETFs for a Sector Rebound appeared first on InvestorPlace.
With the government shutdown now in its fourth week (the longest ever) and 800,000 federal workers on furlough, the risk of recession has increased significantly.
The health care sector spent much of 2018 as the strongest performer across the market. For investors looking to take part in the health care sector, one of the easiest and most popular options is an exchange-traded fund (ETF). Given the popularity of the health care sector ETF space and the relative success of this corner of the financial world, there were several health care ETFs which were among the top performing ETFs overall for 2018.
While there have been losers in most corner of the space, several ETFs still managed to end the year in green and are likely to continue outperforming in 2019 too.
This article is a part of InvestorPlace’s Best ETFs for 2019 contest. Todd Shriber’s pick for the contest is the iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF). For InvestorPlace.com’s Best ETFs contest for 2019, my pick is the iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF).