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

VSPY Makes Notable Cross Below Critical Moving Average
Fri, Apr 17, 4:14 PM ET, by ETF Channel

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

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

In trading on Friday, shares of the ProShares Global Listed Private Equity ETF (PEX) crossed ...

iShares Global Telecom Breaks Below 200-Day Moving Average - Notable for IXP
Fri, Apr 17, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the iShares Global Telecom ETF (IXP) crossed below their ...

VF Takes Over #60 Spot From Honeywell International
Fri, Apr 17, 11:54 AM ET, by ETF Channel

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

EUFN Makes Notable Cross Below Critical Moving Average
Fri, Apr 17, 11:24 AM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Europe Financials ETF (EUFN) crossed below ...

KRE, OZRK, BXS, BOKF: Large Outflows Detected at ETF
Fri, Apr 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, OZRK, BXS, BOKF Exchange traded funds (ETFs) trade just ...

SPDR S&P Biotech ETF Experiences Big Inflow
Fri, Apr 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XBI, DYAX, INO, ESPR Exchange traded funds (ETFs) trade just ...

SHV: ETF Outflow Alert
Fri, Apr 17, 11:14 AM ET, by ETF Channel

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

VXF, LNKD, ILMN, UAL: Large Inflows Detected at ETF
Fri, Apr 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VXF, LNKD, ILMN, UAL Exchange traded funds (ETFs) trade just ...

FKO Makes Bullish Cross Above Critical Moving Average
Thu, Apr 16, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust South Korea AlphaDEX Fund ETF (FKO) ...

See How Chevron Ranks Among Analysts' Top Dow 30 Picks
Thu, Apr 16, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Chevron Corporation (CVX) is ...

Medtronic Takes Over #123 Spot From Electronic Arts
Thu, Apr 16, 12:14 PM ET, by ETF Channel

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

FAB, SWN, CAM, CHK: Large Outflows Detected at ETF
Thu, Apr 16, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FAB, SWN, CAM, CHK Exchange traded funds (ETFs) trade just ...

FTA, XEC, DVN, HES: ETF Outflow Alert
Thu, Apr 16, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FTA, XEC, DVN, HES Exchange traded funds (ETFs) trade just ...

WisdomTree DEFA Equity Income Fund (DTH) Shares Cross Above 200 DMA
Thu, Apr 16, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree DEFA Equity Income Fund ETF (DTH) crossed ...

(DBV) Shares Cross Above 200 DMA
Thu, Apr 16, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the ETF (DBV) crossed above their 200 day moving ...

MCHI: ETF Inflow Alert
Thu, Apr 16, 10:54 AM ET, by ETF Channel

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

FEX, DO, HP, MRO: Large Outflows Detected at ETF
Thu, Apr 16, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FEX, DO, HP, MRO Exchange traded funds (ETFs) trade just ...

CSX a Top Socially Responsible Dividend Stock With 2.2% Yield (CSX)
Thu, Apr 16, 9:44 AM ET, by ETF Channel

CSX Corp. (CSX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

WisdomTree Emerging Markets Equity Income Fund (DEM) Shares Cross Above 200 DMA
Wed, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the WisdomTree Emerging Markets Equity Income Fund ETF (DEM) ...

iShares MSCI Russia Capped Breaks Above 200-Day Moving Average - Bullish for ERUS
Wed, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Russia Capped ETF (ERUS) crossed above ...

ESR Makes Bullish Cross Above Critical Moving Average
Wed, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Emerging Markets Eastern Europe ETF (ESR) ...

ProShares Ultra Basic Materials (UYM) Shares Cross Above 200 DMA
Wed, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Basic Materials ETF (UYM) crossed above ...

IYM Makes Bullish Cross Above Critical Moving Average
Wed, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares U.S. Basic Materials ETF (IYM) crossed above ...

XHB, RYL, SPF, DHI: ETF Outflow Alert
Wed, Apr 15, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XHB, RYL, SPF, DHI Exchange traded funds (ETFs) trade just ...

Guggenheim Shipping (SEA) Shares Cross Above 200 DMA
Wed, Apr 15, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the Guggenheim Shipping ETF (SEA) crossed above their 200 ...

10.3% of TWOK Holdings Seeing Recent Insider Buys
Wed, Apr 15, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR Russell 2000 ETF (TWOK) shows ...

Chevron a Top Ranked SAFE Dividend Stock With 3.9% Yield (CVX)
Wed, Apr 15, 8:54 AM ET, by ETF Channel

Chevron Corporation (CVX) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a ...

Kroger Moves Up In Analyst Rankings, Passing Alliance Data Systems
Tue, Apr 14, 11:54 AM ET, by ETF Channel

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

KORU Crosses Above Key Moving Average Level
Tue, Apr 14, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the Daily South Korea Bull 3x Shares ETF (KORU) ...

EWS Makes Bullish Cross Above Critical Moving Average
Tue, Apr 14, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI Singapore ETF (EWS) crossed above their ...

FXH, UTHR, PCYC, CNC: ETF Outflow Alert
Tue, Apr 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXH, UTHR, PCYC, CNC Exchange traded funds (ETFs) trade just ...

XOP, LPI, EPE, EXXI: ETF Inflow Alert
Tue, Apr 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XOP, LPI, EPE, EXXI Exchange traded funds (ETFs) trade just ...

First Trust Technology AlphaDEX Fund Experiences Big Outflow
Tue, Apr 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXL, SNDK, SUNE, DST Exchange traded funds (ETFs) trade just ...

DTD, WMT, PEP, BMY: Large Outflows Detected at ETF
Tue, Apr 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DTD, WMT, PEP, BMY Exchange traded funds (ETFs) trade just ...

First Trust Consumer Staples AlphaDEX Fund Experiences Big Outflow
Tue, Apr 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXG, PPC, STZ, WWAV Exchange traded funds (ETFs) trade just ...

XRT, DPLO, FIVE, RAD: Large Inflows Detected at ETF
Tue, Apr 14, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XRT, DPLO, FIVE, RAD Exchange traded funds (ETFs) trade just ...

Old Republic International a Top Ranked SAFE Dividend Stock With 4.8% Yield (ORI)
Tue, Apr 14, 9:54 AM ET, by ETF Channel

Old Republic International Corp. (ORI) has been named to the Dividend Channel ''S.A.F.E. ...

16.6% of FXZ Holdings Seeing Recent Insider Buys
Tue, Apr 14, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Materials AlphaDEX Fund (FXZ) ...

10.9% of XSLV Holdings Seeing Recent Insider Buys
Tue, Apr 14, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the PowerShares S&P SmallCap Low Volatility Portfolio ...

ENZL Makes Notable Cross Below Critical Moving Average
Mon, Apr 13, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI New Zealand Capped ETF (ENZL) crossed ...

EDC: Large Outflows Detected at ETF
Mon, Apr 13, 10:54 AM ET, by ETF Channel

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

iShares MSCI Belgium Capped ETF Experiences Big Outflow
Mon, Apr 13, 10:54 AM ET, by ETF Channel

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

PEY, GAS, NWN, ED: Large Outflows Detected at ETF
Mon, Apr 13, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: PEY, GAS, NWN, ED Exchange traded funds (ETFs) trade just ...

QCOM a Top 25 Dividend Giant With $4.8B Held By ETFs
Mon, Apr 13, 9:44 AM ET, by ETF Channel

Qualcomm, Inc. (QCOM) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

T Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Mon, Apr 13, 9:44 AM ET, by ETF Channel

AT&T Inc (T) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a ...

EWY Makes Bullish Cross Above Critical Moving Average
Fri, Apr 10, 4:44 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI South Korea Capped ETF (EWY) crossed ...

Williams Takes Over #19 Spot From Citigroup
Fri, Apr 10, 12:34 PM ET, by ETF Channel

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

GLD: Large Outflows Detected at ETF
Fri, Apr 10, 11:14 AM ET, by ETF Channel

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

JKF Crosses Above Key Moving Average Level
Fri, Apr 10, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the iShares Morningstar Large-Cap Value ETF (JKF) crossed above ...

  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 - 2015, 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 serious 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.