Tag: Healthcare

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4 Best Long-Term Performance Health Sector ETFs 1.3

Is the Health Sector a good place to invest?

The Health Care Select Sector SPDR® Fund (XLV) is the oldest and largest Health Sector ETF available. Its’ inception date was on December 16, 1998.

XLV vs S&P 500 index fund: January 1999 – August 2019

Source: https://www.portfoliovisualizer.com/

XLV vs SPY: December 22, 1998 – September 6, 2019

Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Health Sector ETFs 1.3”

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The Best ETF To Play Biotech (FBT)

Summary

  • Big pharma stocks have underperformed and are likely to continue buying biotech companies for growth.
  • The charts also show large cap biotech companies are underperforming their mid/small cap counterparts.
  • The potential for big pharma and large cap biotech companies looking for needle moving companies points to mid-cap biotech companies being attractive targets for both.
  • Not surprisingly, the biotech ETF with the largest exposure to mid-cap biotech companies has the best performance over the past 1-, 2-, 3- and 5-year periods.

The recently announced deal of Bristol-Myers Squibb (BMY) acquiring Celgene (CELG) got me thinking about biotech & big pharma stocks. The following chart perfectly sums up why I believe big pharma will continue to be acquirers of large-cap biotech companies and small/mid cap companies. Slowing growth due to generic competition and increased scrutiny of drug prices has caused shares of big pharma companies to underperform biotechs and the overall healthcare sector. As you can see below, big pharma as represented by the SPDR S&P Pharmaceuticals ETF (XPH), has gone nowhere since the beginning of 2016, while biotech as represented by the SPDR Biotech ETF (XBI) is up substantially, as is the Health Care Select Sector SPDR ETF (XLV). Simply put, given this vast underperformance, I expect big pharma to go on a spending spree to buy future growth and I will be detailing the current ETF options available in the biotech sector.

Continue reading at Seeking Alpha right here:  https://seekingalpha.com/article/4238204-best-etf-play-biotech

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Best Long-Term Performance Health Sector ETFs 1.2

  • The oldest Health Sector ETF has outperformed an S&P 500 index fund by 1.90% CAGR over the last 19 years. This Health Sector ETF has also experienced less volatility than an S&P 500 index fund.
  • There are currently 35 ETFs in the Morningstar Category called Health. 16 of these funds are 10 years old or older.
  • The top performing Health Sector ETF has outperformed an S&P 500 index fund by 8.98% CAGR over the last 12 years.

Health Care Select Sector SPDR® Fund (XLV) vs S&P 500 index fund: January 1999 – September 2018

Source: https://www.portfoliovisualizer.com/

Continue reading “Best Long-Term Performance Health Sector ETFs 1.2”