How Will Obama-Care Play Into The Markets And ETFs?

“It is our opinion, along with that of many other market professionals, that this current market is overbought.  An overbought market often searches for a place, or more to the point, a reason to pull back.  This Sunday’s possible vote on Health Care Reform could very well be that catalyst.  This is not an issue of being for or against the legislation, as traders you need to check your political views at the door and trade the market that is in front of you.  It is our opinion that today’s selloff is in part due to Sunday’s vote, and our opinion that the market has found a reason to begin a correction,” Noah Joyce Reports From Examiner.

A win in Sunday nights vote for Obama Care will shake the markets and may provide an opportunity for investors to get into Healthcare ETFs.  “Picking individual drug companies or health care providers can be a tricky business, as outside factors like drug trials, lawsuits and legislation can weigh on results. ETFs are an effective way to mitigate the risk of investing in a single health care company by exposing investors to a basket of securities, rather than a hit-or-miss pick,”  Don Dion Reports From The Street.

This is why fear in the markets should create greed in Healthcare ETFs and as Dion says,“The uncertainty over the future of health care has exacted a toll on the industry. ETFs like iShares Dow Jones US Healthcare Provider (IHF), Pharmaceutical HOLDRs (PPH) and iShares Biotechnology (IBB) all will be affected differently by changes in legislation. One fact remains indisputable, however: America is getting older. As baby boomers reach old age, health care costs are expected to skyrocket. Whether or not new legislation transforms our existing system, costs likely will rise over the long term” 

We put together some details on the 3 ETFs  mentioned including the top companies within the ETFs below:

The investment (IHF) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Health Care Providers index. The fund generally invests at least 90% of assets in securities of the index and in depositary receipts representing securities of the index. It may invest the remainder of assets in securities not included in the index but which BGFA believes will help the fund track the index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including money market funds advised by BGFA. The fund is nondiversified.

TOP 10 HOLDINGS ( 62.86% OF TOTAL ASSETS)  
 
Company Symbol % Assets
UnitedHealth Group Incorporated (UNH) 12.14
WellPoint, Inc. Common Stock (WLP) 9.92
MedcoHealth Solutions Inc Commo (MHS) 9.52
Express Scripts, Inc. (ESRX) 7.55
Aetna Inc. Common Stock (AET) 5.26
CIGNA Corporation Common Stock (CI) 4.08
Humana Inc. Common Stock (HUM) 3.95
Quest Diagnostics Incorporated (DGX) 3.87
Laboratory Corporation of Ameri (LH) 3.53
DaVita Inc. Common Stock (DVA) 3.04

Chart for iShares Dow Jones US Healthcare Provider (IHF)

The investment (PPH) seeks to diversify your investment in the pharmaceutical industry through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities. The trust holds shares of common stock issued by specified companies that, when initially selected, were involved in the pharmaceutical industry. Except when a reconstitution event, distribution of securities by an underlying issuer or other event occurs, the group of companies will not change. There are currently 21 companies included in the Pharmaceutical HOLDRS.

TOP 10 HOLDINGS ( 94.52% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Johnson & Johnson Common Stock (JNJ) 24.58
Pfizer, Inc. Common Stock (PFE) 18.53
Merck & Co (N/A) 17.28
Abbott Laboratories Common Stoc (ABT) 11.35
Bristol-Myers Squibb Company Co (BMY) 6.56
MedcoHealth Solutions Inc Commo (MHS) 5.73
Eli Lilly and Company Common St (LLY) 5.14
Forest Laboratories, Inc. Class (FRX) 1.81
Allergan, Inc. Common Stock (AGN) 1.79
Zimmer Holdings, Inc. Common St (ZMH) 1.75

Chart for Pharmaceutical HOLDRs (PPH)

iShares Nasdaq Biotechnology Index Fund (IBB) is an exchange traded equity index fund launched and managed by Barclays Global Fund Advisors. It invests in the public equity markets of the United States. The fund invests in stocks of companies operating across Healthcare sector. It seeks to replicate the performance of Nasdaq Biotechnology Index. The fund invests in stocks of companies listed on the Nasdaq Biotechnology Index in proportion to their weightage in the index. iShares Nasdaq Biotechnology Index Fund was formed on February 5, 2001 and is domiciled in the United States.

Holdings Detail (IBB) (Holdings subject to change)

Symbol
(AMGN) AMGEN INC 9.72 $143,917,392 XNGS Biotechnology 1.00
(GILD) GILEAD SCIENCES INC 8.07 $119,436,634 XNGS Biotechnology 1.00
(TEVA) TEVA PHARMACEUTICAL-SP ADR 8.06 $119,284,582 XNGS Pharmaceuticals 1.00
(CELG) CELGENE CORP 6.47 $95,855,236 XNGS Biotechnology 1.00
(VRTX) VERTEX PHARMACEUTICALS INC 3.99 $59,032,711 XNGS Biotechnology 1.00
(BIIB) BIOGEN IDEC INC 3.16 $46,740,013 XNGS Biotechnology 1.00
(GENZ) GENZYME CORP 2.72 $40,200,210 XNGS Biotechnology 1.00
(ALXN) ALEXION PHARMACEUTICALS INC 2.48 $36,681,726 XNGS Biotechnology 1.00
(PRGO) PERRIGO CO 2.44 $36,054,897 XNGS Pharmaceuticals 1.00
(MYL) MYLAN INC 2.27 $33,673,068 XNGS Pharmaceuticals 1.00
(ILMN) ILLUMINA INC 2.26 $33,493,081 XNMS Biotechnology 1.00
(WCRX) WARNER CHILCOTT PLC-CLASS A 2.23 $32,991,177 XNGS   1.00
(DNDN) DENDREON CORP 2.22 $32,892,896 XNMS Biotechnology 1.00
(LIFE) Life Technologies Corp 2.10 $31,073,724 XNGS Biotechnology 1.00
(UTHR) UNITED THERAPEUTICS CORP 1.87 $27,752,559 XNGS Biotechnology 1.00
(SHPGY) SHIRE PLC-ADR 1.75 $25,908,603 XNGS Pharmaceuticals 1.00
(QGEN) QIAGEN N.V. 1.63 $24,093,450 XNGS   1.00
(REGN) REGENERON PHARMACEUTICALS 1.58 $23,402,960 XNGS Biotechnology 1.00
(HGSI) HUMAN GENOME SCIENCES INC 1.54 $22,763,127 XNMS Biotechnology 1.00
(ONXX) ONYX PHARMACEUTICALS INC 1.39 $20,545,374 XNGS Biotechnology 1.00
(BMRN) BIOMARIN PHARMACEUTICAL INC 1.38 $20,369,588 XNGS Biotechnology 1.00
(CEPH) CEPHALON INC 1.22 $18,040,897 XNGS Pharmaceuticals 1.00
(MYGN) MYRIAD GENETICS INC 1.11 $16,418,028 XNGS Biotechnology 1.00
(OSIP) OSI PHARMACEUTICALS INC 1.02 $15,051,539 XNGS Biotechnology 1.00
(VRUS) PHARMASSET INC 0.87 $12,827,534 XNMS Pharmaceuticals 1.00
(TECH) TECHNE CORP 0.82 $12,144,225 XNGS Biotechnology 1.00
(NKTR) NEKTAR THERAPEUTICS 0.81 $12,007,694 XNGS Biotechnology 1.00
(INCY) INCYTE CORP 0.81 $12,002,309 XNMS Biotechnology 1.00
(GPRO) GEN-PROBE INC 0.79 $11,719,443 XNGS Biotechnology 1.00
(CBST) CUBIST PHARMACEUTICALS INC 0.77 $11,381,704 XNGS Biotechnology 1.00
(AUXL) AUXILIUM PHARMACEUTICALS INC 0.76 $11,238,780 XNGS Pharmaceuticals 1.00
(SLXP) SALIX PHARMACEUTICALS LTD 0.76 $11,206,653 XNMS Pharmaceuticals 1.00
(MNKD) MANNKIND CORP 0.71 $10,558,822 XNMS Biotechnology 1.00
(MDVN) MEDIVATION INC 0.68 $10,135,829 XNMS Pharmaceuticals 1.00
(ENDP) ENDO PHARMACEUT HLDGS INC 0.67 $9,921,757 XNGS Pharmaceuticals 1.00
(ACOR) ACORDA THERAPEUTICS INC 0.65 $9,571,901 XNMS Biotechnology 1.00
(AMLN) AMYLIN PHARMACEUTICALS INC 0.65 $9,559,393 XNGS Biotechnology 1.00
(ITMN) INTERMUNE INC 0.60 $8,829,247 XNMS Biotechnology 1.00
(IPXL) IMPAX LABORATORIES INC 0.56 $8,249,792 XNMS Pharmaceuticals 1.00
(SGEN) SEATTLE GENETICS INC /WA 0.54 $7,969,545 XNMS Biotechnology 1.00
(EXEL) EXELIXIS INC 0.52 $7,724,768 XNGS Biotechnology 1.00
(ALKS) ALKERMES INC 0.52 $7,655,346 XNGS Pharmaceuticals 1.00
(ISIS) ISIS PHARMACEUTICALS INC 0.48 $7,053,428 XNGS Biotechnology 1.00
(SVNT) SAVIENT PHARMACEUTICALS INC 0.46 $6,867,420 XNMS Biotechnology 1.00
(VPHM) VIROPHARMA INC 0.44 $6,533,879 XNGS Pharmaceuticals 1.00
(ALNY) ALNYLAM PHARMACEUTICALS INC 0.43 $6,312,728 XNGS Biotechnology 1.00
(ALTH) ALLOS THERAPEUTICS INC 0.40 $5,871,211 XNMS Biotechnology 1.00
(MNTA) MOMENTA PHARMACEUTICALS INC 0.40 $5,856,006 XNMS Biotechnology 1.00
(ISPH) INSPIRE PHARMACEUTICALS INC 0.39 $5,847,920 XNMS Pharmaceuticals 1.00
(AMAG) AMAG PHARMACEUTICALS INC 0.37 $5,518,131 XNMS Pharmaceuticals 1.00
(GERN) GERON CORP 0.37 $5,470,253 XNMS Biotechnology 1.00
(PDLI) PDL BIOPHARMA INC 0.35 $5,180,919 XNGS Biotechnology 1.00
(LMNX) LUMINEX CORP 0.35 $5,152,192 XNMS Biotechnology 1.00
(THRX) THERAVANCE INC 0.33 $4,874,746 XNMS Pharmaceuticals 1.00
(VVUS) VIVUS INC 0.32 $4,694,216 XNMS Pharmaceuticals 1.00
(ENZN) ENZON PHARMACEUTICALS INC 0.31 $4,643,551 XNMS Pharmaceuticals 1.00
(HALO) HALOZYME THERAPEUTICS INC 0.29 $4,321,807 XNMS Biotechnology 1.00
(GHDX) GENOMIC HEALTH INC 0.29 $4,306,965 XNMS Biotechnology 1.00
(TRGT) TARGACEPT INC 0.29 $4,289,796 XNMS Pharmaceuticals 1.00
(MITI) MICROMET INC 0.29 $4,245,100 XNMS Pharmaceuticals 1.00
(CRA) CELERA CORP 0.27 $4,063,908 XNGS Biotechnology 1.00
(AFFX) AFFYMETRIX INC 0.27 $3,942,706 XNGS Biotechnology 1.00
(ZGEN) ZYMOGENETICS INC 0.26 $3,846,485 XNMS Biotechnology 1.00
(FACT) FACET BIOTECH CORP 0.24 $3,492,911 XNGS Biotechnology 1.00
(CADX) CADENCE PHARMACEUTICALS INC 0.23 $3,362,591 XNMS Pharmaceuticals 1.00
(RIGL) RIGEL PHARMACEUTICALS INC 0.22 $3,318,324 XNMS Pharmaceuticals 1.00
(OPTR) OPTIMER PHARMACEUTICALS INC 0.22 $3,266,826 XNMS Pharmaceuticals 1.00
(NABI) NABI BIOPHARMACEUTICALS 0.22 $3,246,280 XNMS Biotechnology 1.00
(SQNM) SEQUENOM INC 0.21 $3,057,408 XNMS Biotechnology 1.00
(CRME) CARDIOME PHARMA CORPORATION 0.20 $2,947,086 XNMS Pharmaceuticals 1.00
(AMRI) ALBANY MOLECULAR RESEARCH 0.19 $2,851,200 XNGS Biotechnology 1.00
(QCOR) QUESTCOR PHARMACEUTICALS 0.18 $2,622,968 XNMS Pharmaceuticals 1.00
(CRXL) CRUCELL-ADR 0.17 $2,564,696 XNMS Biotechnology 1.00
(IMGN) IMMUNOGEN INC 0.17 $2,489,472 XNMS Biotechnology 1.00
(OREX) OREXIGEN THERAPEUTICS INC 0.17 $2,463,390 XNMS Biotechnology 1.00
(MDCO) MEDICINES COMPANY 0.17 $2,447,920 XNGS Pharmaceuticals 1.00
(OSIR) OSIRIS THERAPEUTICS INC 0.16 $2,376,298 XNMS Biotechnology 1.00
(IMMU) IMMUNOMEDICS INC 0.16 $2,368,146 XNMS Biotechnology 1.00
(QLTI) QLT INC 0.16 $2,335,128 XNGS Biotechnology 1.00
(DYAX) DYAX CORP 0.15 $2,290,271 XNMS Biotechnology 1.00
(BCRX) BIOCRYST PHARMACEUTICALS INC 0.15 $2,272,745 XNMS Biotechnology 1.00
(OMPI) OBAGI MEDICAL PRODUCTS INC 0.15 $2,260,148 XNMS Pharmaceuticals 1.00
(ARIA) ARIAD PHARMACEUTICALS INC 0.15 $2,255,555 XNMS Pharmaceuticals 1.00
(BMTI) BIOMIMETIC THERAPEUTICS INC 0.15 $2,147,103 XNMS Biotechnology 1.00
(LXRX) LEXICON PHARMACEUTICALS INC 0.14 $2,119,211 XNMS Biotechnology 1.00
(XNPT) XENOPORT INC 0.14 $2,112,143 XNGS Pharmaceuticals 1.00
(SNTS) SANTARUS INC 0.14 $2,042,308 XNMS Pharmaceuticals 1.00
(ARNA) ARENA PHARMACEUTICALS INC 0.14 $2,007,325 XNMS Biotechnology 1.00
(LGND) LIGAND PHARMACEUTICALS-CL B 0.13 $1,879,090 XNMS Biotechnology 1.00
(SGMO) SANGAMO BIOSCIENCES INC 0.13 $1,851,528 XNMS Biotechnology 1.00
(NVAX) NOVAVAX INC 0.12 $1,826,264 XNMS Biotechnology 1.00
(PTIE) PAIN THERAPEUTICS INC 0.12 $1,818,444 XNGS Pharmaceuticals 1.00
(BJGP) BMP SUNSTONE CORP 0.12 $1,760,633 XNMS Pharmaceuticals 1.00
(CYPB) CYPRESS BIOSCIENCE INC 0.12 $1,759,411 XNMS Pharmaceuticals 1.00
(POZN) POZEN INC 0.11 $1,697,642 XNMS Pharmaceuticals 1.00
(DRRX) DURECT CORPORATION 0.11 $1,642,733 XNMS Pharmaceuticals 1.00
(MAXY) MAXYGEN INC 0.11 $1,611,328 XNMS Biotechnology 1.00
(FLML) FLAMEL TECHNOLOGIES-SP ADR 0.11 $1,605,100 XNMS Pharmaceuticals 1.00
(VNDA) VANDA PHARMACEUTICALS INC 0.11 $1,603,916 XNMS Pharmaceuticals 1.00
(SIGA) SIGA TECHNOLOGIES INC 0.11 $1,600,469 XNMS Biotechnology 1.00
(CSKI) CHINA SKY ONE MEDICAL INC 0.11 $1,557,747 XNGS Pharmaceuticals 1.00
(CYTK) CYTOKINETICS INC 0.10 $1,520,609 XNMS Biotechnology 1.00
(SPPI) SPECTRUM PHARMACEUTICALS INC 0.10 $1,480,651 XNMS Pharmaceuticals 1.00
(HITK) HI-TECH PHARMACAL CO INC 0.10 $1,462,468 XNGS Pharmaceuticals 1.00
(IDIX) IDENIX PHARMACEUTICALS INC 0.09 $1,403,637 XNMS Biotechnology 1.00
(SUPG) SUPERGEN INC 0.09 $1,390,714 XNMS Pharmaceuticals 1.00
(PGNX) PROGENICS PHARMACEUTICALS 0.09 $1,338,443 XNMS Biotechnology 1.00
(GTXI) GTX INC 0.09 $1,328,900 XNMS Biotechnology 1.00
(NPSP) NPS PHARMACEUTICALS INC 0.09 $1,301,748 XNMS Biotechnology 1.00
(AKRX) AKORN INC 0.08 $1,165,587 XNMS Pharmaceuticals 1.00
(DEPO) DEPOMED INC 0.08 $1,130,468 XNMS Pharmaceuticals 1.00
(STEM) STEMCELLS INC 0.08 $1,121,001 XNMS Biotechnology 1.00
(ARQL) ARQULE INC 0.07 $1,049,693 XNMS Biotechnology 1.00
(ADLR) ADOLOR CORPORATION 0.06 $957,251 XNMS Pharmaceuticals 1.00
(BIOD) BIODEL INC 0.06 $853,403 XNMS Biotechnology 1.00
BLACKROCK FDS III 0.05 $796,699 S-T Securities 1.00
(XOMA) XOMA LTD 0.05 $776,901 XNMS   1.00
(VICL) VICAL INC 0.05 $776,609 XNMS Biotechnology 1.00
(ALXA) ALEXZA PHARMACEUTICALS INC 0.05 $764,559 XNMS Pharmaceuticals 1.00
(ARRY) ARRAY BIOPHARMA INC 0.05 $740,669 XNMS Biotechnology 1.00
(SNTA) SYNTA PHARMACEUTICALS CORP 0.04 $630,666 XNMS Pharmaceuticals 1.00
(DSCO) DISCOVERY LABORATORIES INC 0.04 $598,452 XNMS Pharmaceuticals 1.00
(NBIX) NEUROCRINE BIOSCIENCES INC 0.04 $582,806 XNGS Biotechnology 1.00
(PARD) PONIARD PHARMACEUTICALS INC 0.04 $582,596 XNMS Pharmaceuticals 1.00
(CBRX) COLUMBIA LABORATORIES INC 0.03 $491,356 XNMS Pharmaceuticals 1.00
(MBRK) MIDDLEBROOK PHARMACEUTICALS 0.01 $104,281 XNMS Pharmaceuticals

Chart for iShares Nasdaq Biotechnology (IBB)

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