Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

2 Healthcare ETFs To Consider As Delta Cases Surge

By Investing.com (Tezcan Gecgil/Investing.com )ETFsAug 05, 2021 04:51AM ET
www.investing.com/analysis/as-delta-cases-surge-2-healthcare-etfs-to-consider-200596221
2 Healthcare ETFs To Consider As Delta Cases Surge
By Investing.com (Tezcan Gecgil/Investing.com )   |  Aug 05, 2021 04:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The increase in global cases of the Delta variant has meant increased volatility for many stocks. Yet, broader indices keep making new highs. So far in the year, the Dow Jones Industrial Average, the S&P 500, as well as the tech-heavy NASDAQ 100 indexes are all up: around 14.5%, 17.5% and 16.5%, respectively.

How this strain of the virus could impact equities during the rest of the summer is hard to predict. While most analysts agree continued choppiness is likely, others debate whether a full-blown crash could also be in the cards.

Given the nature of the pandemic, the healthcare industry has been uniquely affected since early 2020. COVID-19 has imposed significant challenges on healthcare systems. Yet, the industry has responded by bringing technological advances, as well as innovations, including vaccines and other medicines. Understandably, innovation drives growth, and shares of innovative companies typically see significant returns.

Recent research by Deloitte highlights:

“The COVID pandemic will have a longer-term impact on health-care systems, that should be addressed by political and health-care authorities as soon as possible.”

Put another way, healthcare stocks will likely continue to make headlines in the rest of the year, too.

Today, we discuss two exchange-traded funds (ETFs) that focus on the industry.

1. Health Care Select Sector SPDR Fund

Current Price: $133.60
52-Week Range: $100.31 - $134.47
Dividend Yield: 1.33%
Expense Ratio: 0.12% per year

The Health Care Select Sector SPDR® Fund (NYSE:XLV) invests in biopharma names as well as those that manufacture life sciences and health-care equipment and supplies.

XLV Weekly
XLV Weekly

XLV, which has 64 holdings, tracks the returns of the Health Care Select Sector Index. The fund started trading in December 1998.

In terms of the sub-sectoral breakdown, the healthcare equipment and supplies sector makes up the highest portion, with 27.95%, followed by the pharmaceuticals, and healthcare providers and services sectors, with 27.72% and 19.62%, respectively.

The top 10 holdings account for almost half of net assets of $32.8 billion. Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH), Pfizer (NYSE:PFE), Abbott Laboratories (NYSE:ABT) and AbbVie (NYSE:ABBV) lead the names in the roster.

Over the past year, the fund is up about 24% and hit a record high in recent days. We believe the macro economic backdrop for the healthcare industry remains bullish.

In addition to the pandemic, the aging US population and individuals’ desire to live longer and healthier provide significant tailwinds for many biopharma names. According to the Population Reference Bureau, “The number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060.”

Those investors who want access to large-cap US healthcare stocks should consider buying the dips in the fund.

2. iShares US Healthcare Providers ETF

Current Price: $271.74
52-Week Range: $188.81 - $275.60
Dividend Yield: 0.51%
Expense Ratio: 0.42% per year

The iShares US Healthcare Providers ETF (NYSE:IHF) gives exposure to companies that provide health insurance, diagnostics and specialized treatment. The fund started trading in May 2006.

ILF Weekly
ILF Weekly

IHF, which has 62 holdings, tracks the returns of the Dow Jones US Select Health Care Providers Index. The managed healthcare sub-sector has the highest slice, with 45.36%. Next in line are the healthcare services and healthcare facilities sub-sectors, with 33.72% and 12.21%, respectively.

The fund’s top 10 holdings comprise 72% of net assets of $1.2 billion. UnitedHealth, CVS Health (NYSE:CVS), Anthem (NYSE:ANTM), Humana (NYSE:HUM) and Centene (NYSE:CNC) lead the names in the fund.

Over the past year, the fund is up about 32%, and saw a record high in late May. The US currently spends 16.89% of its gross domestic product (GDP) on healthcare—the highest percentage compared with other countries around the globe. As a result, IHF remains a solid long-term investment choice for many retail investors.

2 Healthcare ETFs To Consider As Delta Cases Surge
 

Related Articles

BlackBull Markets
Yellow Card For Sports ETF By BlackBull Markets - Sep 01, 2021

Cristiano Ronaldo announced that he would be leaving Juventus Football Club (MI:JUVE) and returning to play for the club where he started his professional career, Manchester United...

Damian Rodgers
A Gold ETF That Pays You Monthly By Damian Rodgers - Jul 29, 2021

There is a problem with gold ETFs like GLD (NYSE:GLD), iShares Gold Trust (NYSE:IAU), and GraniteShares Gold Trust (NYSE:BAR). They don’t pay any yield at all to investors. Gold...

2 Healthcare ETFs To Consider As Delta Cases Surge

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Khalid Lawan
Khalid Lawan Aug 12, 2021 4:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How are you how your busyness
Lewis Bukasa
Lewis Bukasa Aug 05, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Please can you explain me how this business is working
Ivan Cetinic
Ivan Cetinic Aug 05, 2021 11:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stanton Cameron
Stanton Cameron Aug 05, 2021 11:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well done! Thank you for using metrics and facts
Charles Barnes
Charles Barnes Aug 05, 2021 11:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Terrible advice. Tech is better choice.
Stanton Cameron
Stanton Cameron Aug 05, 2021 11:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is not the platform for lack of vocabulary
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email