Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Obama Victory Puts Healthcare ETFs In Focus

Fri, Nov 9, 8:15 AM ET, by Michael Johnston

While some American’s were elated with Obama’s re-election, Wall Street made it quite clear who it had voted for as markets took a sharp nosedive in a post-election sell off immediately following the President’s victory. To many investors, Obama’s re-election has placed looming concerns over the Fiscal Cliff to the forefront, as the automatic round of massive spending cuts and tax hikes now seem inevitable come January 1. And with Democrats maintaining control of the Senate and Republicans dominating the House, many remain understandably concerned about the split Congress coming up with a viable resolution [see 101 ETF Lessons Every Financial Advisor Should Learn].

For investors, however, Obama’s re-election will undoubtedly have an impact on everyone’s bottom line, with taxes being the main concern. But, of course, on Wall Street, there is always a winning play. Obama’s victory has already benefited one corner of the market – healthcare, a sector that has a promising future as the President’s win locks in another four years of Obamacare. Currently, there are 30 ETFs available to investors that offer targeted exposure to this potentially lucrative corner of the market. Below, we highlight the already stellar performances of various niche segments of the healthcare ETF space.

Biotech Booming

Ticker ETF YTD 1-Year Return 3-Year Return 5-Year Return
BBH Market Vectors Biotech ETF 39.56% 42.92% 76.29% 90.34%
FBT NYSE Arca Biotechnology Index Fund 30.56% 29.25% 57.93% 68.32%
XBI SPDR S&P Biotech ETF 25.50% 32.21% 67.26% 39.47%
IBB Nasdaq Biotechnology 25.04% 35.71% 69.50% 53.68%
PBE Dynamic Biotech & Genome 11.37% 13.98% 37.68% 13.98%
*Returns as of 11/7/2012

Biotechnology ETFs have certainly held their ground over the last few years, as many companies within the industry continue to be pioneers in the healthcare field. Big names like Amgen Inc. (AMGN), Gliead Sciences Inc (GILD) and one of Forbe’s top picks for most innovative companies, Alexion Pharmaceuticals (ALXN), have all enjoyed handsome returns, with many logging in double-digit gains just one day after the election.

Without a doubt, there has been a steady uptrend for these biotech ETFs, as illustrated by the funds’ stellar returns. For those looking to make a leveraged play on the sector, ProShares Ultra Nasdaq Biotechnology ETF (BIB) is currently the only option, but be aware that this powerful tool comes with a steep price tag, clocking in at 0.95%. Year-to-date, BIB is up a whopping 46.72% [see also Baby Boomers ETFdb Portfolio].

Supply Side Winners: Medical Devices

One of the main objectives the President wishes to achieve with Obamacare is the expansion of free preventative services and increased access and affordability. With this consequently comes an increased demand for medical equipment and devices as more people enter the healthcare consumer pool. Currently, there are only two ETFs that offer targeted exposure to this niche segment of the healthcare world: iShare’s Dow Jones US Medical Devices Index Fund (IHI) and State Street’s SPDR S&P Health Care Equiptment ETF (XHE).

Considering these two funds’ targeted focus, it is not surprising to see some major overlaps in holdings, with industry leaders like Intuitive Surgical (ISRG) and Varian Medical Systems, Inc (VAR) both making appearances in IHI’s and XHE’s top ten holdings. Year-to-date, XHE has gained 13.56%, while IHI has trailed behind by only a slim margin. For the cost-conscious investors, XHE may be a more appealing option, as it charges 13 basis points lower than IHI [see also Vote For Obama Or Romney With These ETFs].

Pharmaceutical

Ticker ETF YTD 1-Year Return 3-Year Return 5-Year Return
PJP Dynamic Pharmaceuticals 19.26% 25.14% 97.80% 86.73%
IHE Dow Jones U.S. Pharmaceutical Index Fund 13.14% 21.51% 67.19% 68.91%
PPH Market Vectors Pharmaceutical ETF 10.55% 15.67% 28.24% 0.06%
XPH SPDR S&P Pharmaceuticals ETF 9.25% 15.17% 62.16% 73.30%
DRGS Global Big Pharma ETN 9.23% 15.68% n/a n/a
*Returns as of 11/7/2012

Following similar logic, pharmaceutical companies are also poised to profit from Obamacare with more individuals seeking preventative care and pharmaceutical treatments. Already, pharma ETFs have rewarded investors with handsome returns over the years, despite their somewhat volatile nature [see also 3 Simple All-ETF "Core" Portfolios].

The portfolios of many of these ETFs include some of the biggest names in the industry, including Pfizer, Johnson & Johnson, Merk & Co and Abbott Laboratories. For those looking for a global spin on the pharma market, RBS’s DRGS is a compelling option, as it offers exposure to pharmaceutical companies from the United States, United Kingdom, Switzerland, Denmark, France, Israel and Canada.

Follow me on Twitter @DPylypczak

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "price" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "NYSE" Definition
This Article's Word Cloud:   Biotech   Biotechnology   Devices   ETFdb   ETFs   Fund   Index   Jones   Medical   Obama   Obamacare   Pharmaceutical   Pharmaceuticals   President   Return   SPDR   Street   United   Vectors   Wall   Year   also   companies   date   election   exposure   free   handsome   have   healthcare   industry   investors   many   market   more   niche   offer   only   option   over   pharmaceutical   returns   some   targeted   that   there   these   this   with   years

| More

XHE Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Health Care Equipment ETF (XHE) crossed ...

JPX Makes Notable Cross Below Critical Moving Average
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the Proshares UltraShort MSCI Pacific ex-Japan ETF (JPX) crossed ...

SPDR Russell 1000 (ONEK) Shares Cross Above 200 DMA
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR Russell 1000 ETF (ONEK) crossed above their ...

MDIV Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) crossed ...

BBRC Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the EGShares FTSE Beyond BRICs ETF (BBRC) crossed above ...

PFI Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DWA Financial Momentum Portfolio ETF (PFI) crossed ...

PWV Makes Bullish Cross Above Critical Moving Average
Tue, Oct 21, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares Dynamic Large Cap Value Portfolio ETF (PWV) ...

FMC Technologies Moves Up In Analyst Rankings, Passing International Paper
Tue, Oct 21, 12:34 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

S&P 500 Volatility Response Shares Breaks Above 200-Day Moving Average - Bullish for VSPY
Tue, Oct 21, 11:44 AM ET, by ETF Channel

In trading on Tuesday, shares of the S&P 500 Volatility Response Shares ETF (VSPY) crossed ...

UPRO Crosses Above Key Moving Average Level
Tue, Oct 21, 11:44 AM ET, by ETF Channel

In trading on Tuesday, shares of the Proshares UltraPro S&P500 ETF (UPRO) crossed above their ...

VOO Crosses Above Key Moving Average Level
Tue, Oct 21, 11:44 AM ET, by ETF Channel

In trading on Tuesday, shares of the Vanguard S&P 500 ETF (VOO) crossed above their ...

SPY Makes Bullish Cross Above Critical Moving Average
Tue, Oct 21, 11:44 AM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P 500 ETF (SPY) crossed above their ...

Guggenheim China Technology Breaks Above 200-Day Moving Average - Bullish for CQQQ
Tue, Oct 21, 11:44 AM ET, by ETF Channel

In trading on Tuesday, shares of the Guggenheim China Technology ETF (CQQQ) crossed above their ...

Proshares Short Basic Materials Breaks Below 200-Day Moving Average - Notable for SBM
Tue, Oct 21, 11:34 AM ET, by ETF Channel

In trading on Tuesday, shares of the Proshares Short Basic Materials ETF (SBM) crossed below ...

PMR Crosses Above Key Moving Average Level
Tue, Oct 21, 11:24 AM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares Dynamic Retail Portfolio ETF (PMR) crossed above ...

EZA Makes Bullish Cross Above Critical Moving Average
Tue, Oct 21, 11:24 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI South Africa ETF (EZA) crossed above ...

EWW Makes Bullish Cross Above Critical Moving Average
Tue, Oct 21, 11:24 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI Mexico Capped ETF (EWW) crossed above ...

SMN Crosses Below Key Moving Average Level
Tue, Oct 21, 11:24 AM ET, by ETF Channel

In trading on Tuesday, shares of the Proshares UltraShort Basic Materials ETF (SMN) crossed below ...

iShares Nasdaq Biotechnology ETF Experiences Big Inflow
Tue, Oct 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IBB, REGN, MYL, ALXN Exchange traded funds (ETFs) trade just ...

IYF, AIG, MET, MS: Large Inflows Detected at ETF
Tue, Oct 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYF, AIG, MET, MS Exchange traded funds (ETFs) trade just ...

Vanguard Mortgage-Backed Securities ETF Experiences Big Inflow
Tue, Oct 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VMBS Exchange traded funds (ETFs) trade just like stocks, but ...

SCZ: Large Outflows Detected at ETF
Tue, Oct 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SCZ Exchange traded funds (ETFs) trade just like stocks, but ...

SLV: Large Outflows Detected at ETF
Tue, Oct 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SLV Exchange traded funds (ETFs) trade just like stocks, but ...

IJJ, SLG, O, HFC: Large Outflows Detected at ETF
Tue, Oct 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IJJ, SLG, O, HFC Exchange traded funds (ETFs) trade just ...

Why Kraft Foods Group is a Top Socially Responsible Dividend Stock (KRFT)
Tue, Oct 21, 9:34 AM ET, by ETF Channel

Kraft Foods Group Inc (KRFT) has been named a Top Socially Responsible Dividend Stock by ...

VUG Crosses Above Key Moving Average Level
Mon, Oct 20, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Vanguard Growth ETF (VUG) crossed above their 200 ...

NASDAQ-100 Equal Weighted Index Shares Breaks Above 200-Day Moving Average - Bullish for QQQE
Mon, Oct 20, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the NASDAQ-100 Equal Weighted Index Shares ETF (QQQE) crossed ...

Pharmaceutical (PPH) Shares Cross Above 200 DMA
Mon, Oct 20, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the Pharmaceutical ETF (PPH) crossed above their 200 day ...

Proshares Ultra High Yield (UJB) Shares Cross Above 200 DMA
Mon, Oct 20, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the Proshares Ultra High Yield ETF (UJB) crossed above ...

iShares Select Dividend Breaks Above 200-Day Moving Average - Bullish for DVY
Mon, Oct 20, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the iShares Select Dividend ETF (DVY) crossed above their ...

IWF Makes Bullish Cross Above Critical Moving Average
Mon, Oct 20, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the iShares Russell 1000 Growth ETF (IWF) crossed above ...

IWY, GOOGL, FB, PEP: ETF Inflow Alert
Mon, Oct 20, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWY, GOOGL, FB, PEP Exchange traded funds (ETFs) trade just ...

UUP: Large Inflows Detected at ETF
Mon, Oct 20, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: UUP Exchange traded funds (ETFs) trade just like stocks, but ...

OEF, INTC, ORCL, ABBV: Large Inflows Detected at ETF
Mon, Oct 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: OEF, INTC, ORCL, ABBV Exchange traded funds (ETFs) trade just ...

VTV, WFC, BRK.B, JPM: ETF Inflow Alert
Mon, Oct 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VTV, WFC, BRK.B, JPM Exchange traded funds (ETFs) trade just ...

BIV: ETF Inflow Alert
Mon, Oct 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: BIV Exchange traded funds (ETFs) trade just like stocks, but ...

FAS, AFL, AMG, ARE: ETF Inflow Alert
Mon, Oct 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FAS, AFL, AMG, ARE Exchange traded funds (ETFs) trade just ...

14.6% of FYT Holdings Seeing Recent Insider Buys
Mon, Oct 20, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Small Cap Value AlphaDEX ...

SKT Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Mon, Oct 20, 9:34 AM ET, by ETF Channel

Tanger Factory Outlet Centers, Inc. (SKT) has been named to the Dividend Channel ''S.A.F.E. ...

CHLC Crosses Below Key Moving Average Level
Fri, Oct 17, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Renminbi Bond ETF (CHLC) crossed below their 200 ...

Regeneron Pharmaceuticals Moves Up In Analyst Rankings, Passing Harman International Industries
Fri, Oct 17, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

SSO, AES, A, GAS: ETF Outflow Alert
Fri, Oct 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SSO, AES, A, GAS Exchange traded funds (ETFs) trade just ...

VO, AVGO, CMG, MCO: ETF Inflow Alert
Fri, Oct 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VO, AVGO, CMG, MCO Exchange traded funds (ETFs) trade just ...

SDOW Crosses Below Key Moving Average Level
Fri, Oct 17, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Proshares UltraPro Short Dow30 ETF (SDOW) crossed below ...

Daily Technology Bull 3x Shares Breaks Above 200-Day Moving Average - Bullish for TECL
Fri, Oct 17, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Daily Technology Bull 3x Shares ETF (TECL) crossed ...

Proshares Short Dow30 Breaks Below 200-Day Moving Average - Notable for DOG
Fri, Oct 17, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Proshares Short Dow30 ETF (DOG) crossed below their ...

iShares MSCI Indonesia Breaks Above 200-Day Moving Average - Bullish for EIDO
Fri, Oct 17, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Indonesia ETF (EIDO) crossed above their ...

First Trust NYSE Arca Biotechnology Index Fund Experiences Big Inflow
Fri, Oct 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FBT, EXAS, UTHR, BMRN Exchange traded funds (ETFs) trade just ...

DWAS, AKRX, PCRX, LCI: Large Outflows Detected at ETF
Fri, Oct 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: DWAS, AKRX, PCRX, LCI Exchange traded funds (ETFs) trade just ...

SLX Crosses Critical Technical Indicator
Thu, Oct 16, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Steel ETF (SLX) entered into oversold territory, changing ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Obama Victory Puts Healthcare ETFs In Focus | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.