Cameron HurstHealth Care Select Sector SPDR FundXLVTOP PICKAug 07, 2018
This tends to be late stage and has been growing rapidly in the last 3-to-4 months. It is just starting to break out. Within the underlying sector, more industries are starting to do well pharma, services, distributors and hospitals are all improving and the US-based policy risk seems to be toning down. (Analysts’ price target was not provided)
Likes healthcare in general, a larger weight for him. Healthcare has been the leader YTD, only 11 days into the new year. The XLV would make sense for a broad-based, US healthcare strategy. IXJ is the global version of that.
The recent inflows into healthcare are based on the new diet drugs like Ozempic. Novo Nordisk and Eli Lilly have benefitted from this trend. These diet drugs are the AI equivalent in healthcare, are blockbusters.
Parts of healthcare are doing very well: equipment, disposables, more surgical procedures, managed care. Does this translate into stronger earnings and growth even during an economic contraction?
She picked it to start the year, but it hasn't performed well in the first six months. Healthcare has lagged this year, but when the VIX is this low, you want to hold defence.
She hopes healthcare picks up in the second half. She feels we're in late cycle where staples and utilities are expensive, but healthcare performs the best among these. HC has underperformed in the first half, but should improve second half or 2024, because XLV holds so many good companies.
Defensive name that provides exposure to health care sector. Very strong sector as health care demand not going away. Excellent prospects for healthcare during summer months.
She's not a fan of ETFs, this single-brushstroke style of investing, but an ETF makes sense in health care, because the companies are very different. Some will excel while others will flame out (considering their drug pipelines).
As a 5-year hold The valuation is attractive, balance sheet is good and there's non-discretionary demand for the products. Many of the underlying stocks pay a good dividend.
Is bullish biotech Biotchechs like Insight are up 13%, Moderna 25% and Regeneron 6% so hitting their lows. The whole XLV is up 8.5% off its June 17 low. 91 stocks in the S&P are above their 200-day moving average, and 18 of these are healthcare. This is the best sector to be overweight in.
Allan Tong’s Discover PicksXLV ETF’s top holdings are Johnson & Johnson, UnitedHealth Group, Pfizer, Abbott Labs, AbbVie, Thermo Fisher, Merck, Eli Lilly and Danaher. A bullish case can be made for almost all all these names. Another plus: the MER is only 0.1%, though the dividend pays a lowly 1.4%. XLV’s PE is merely 6.62%, volumes average a healthy 14.8 billion a day, and its beta is a very stable 0.73. While you can make better gains holding some of the stocks this ETF holds, XLV is a safe way to play the American healthcare stocks in 2022. Read 3 Promising Healthcare Stocks for our full analysis.
Allan Tong’s Discover Picks However, if you want to own several in one place or can’t afford to buy one of these stocks individually, XLV is the place to go. It trades on the Nasdaq. It charges an ultra-low MER of 0.12%, trades at merely 4.18x PE and pays a 1.4% dividend. Also, average volumes are a robust 13.9 million and the Beta is a low 0.71. YTD, XLV has lost 7.55%, but Omicron was the major disruptor and restrictions are quickly lifting now. Essentially, you’re buying this ETF for the future. Read 3 Best Cyclical and Value ETFs for our full analysis.
This tends to be late stage and has been growing rapidly in the last 3-to-4 months. It is just starting to break out. Within the underlying sector, more industries are starting to do well pharma, services, distributors and hospitals are all improving and the US-based policy risk seems to be toning down. (Analysts’ price target was not provided)