Healthcare ETFs In Focus On Johnson & Johnson Earnings [Health Care SPDR (ETF)]

Health Care Select Sector SPDR Fund (NYSEARCA:XLV)

The most popular healthcare ETF on the market, XLV follows the S&P Health Care Select Sector Index. This fund manages about $9.8 billion in its asset base and trades in heavy volume of more than 8 million. Expense ratio came in at 0.16% annually. In total, the fund holds about 56 securities in its basket. Of these firms, JNJ takes the first spot, making up roughly 12.79% of the assets.

Pharma accounts for 46% share from a sector look while biotech, healthcare providers and services, and equipment and suppliers make up for double-digit exposure. The fund gained nearly 2.5% in the year-to-date time frame and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a ‘Medium’ risk outlook (read: ETF Sector Rotation: Industrials Out, Healthcare In).

iShares U.S. Healthcare ETF (NYSEARCA:IYH)

This fund provides exposure to 111 securities by tracking the Dow Jones U.S. Health Care Index. Here again, Johnson & Johnson dominates the fund’s return at 12.07% of total assets. In terms of industrial exposure, Pharma takes the top spot at 49%, closely followed by biotech (20%), medical equipment (17%) and healthcare services (14%).

The product has amassed nearly $2.6 billion in its asset base while charges 45 bps in annual fees. It trades in good volume of more than 267,000 shares a day, suggesting a relatively tight bid/ask spread. IYH is up 2.14% year-to-date and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a ‘Medium’ risk outlook.

This article is brought to you courtesy of Eric Dutram.

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