For investors seeking momentum, iShares U.S. Healthcare ETF IYH is probably on radar now. The fund just hit a 52-week high and is up nearly 27.7% from its 52-week low price of $137.30/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:
IYH in Focus
This fund looks to track the performance of the healthcare sector of the U.S. equity market. The fund is tilted toward the Pharmaceuticals sector with about 33.7% exposure, followed by Biotechnology (24.5%). Johnson & Johnson (NYSE:JNJ), Pfizer Inc (NYSE:PFE) and Unitedhealth Group Inc are the top three stocks of the fund. The net expense ratio of the fund is 0.44% (see Health Care ETFs here).
Why the Move?
The fund benefited from the upbeat earnings from Johnson & Johnson and Unitedhealth Group released lately. UnitedHealth Group (NYSE:UNH) comfortably beat the Zacks Consensus Estimate on membership growth. Johnson & Johnson also beat the Zacks Consensus Estimate for both earnings and sales. Both stocks gained considerably after earnings.
More Gains Ahead?
The fund has a Zacks Rank #2 (Buy). It seems that this fund might stay strong given a positive weighted alpha of 21.40. As a result, there is still some promise for investors who want to ride on this surging ETF.
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ISHARS-US HLTHC (IYH): ETF Research Reports
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Zacks Investment Research