These five funds focus on healthcare and offer a variety of subsectors.
Invesco S&P SmallCap Health Care ETF (PSCH), SPDR S&P Health Care Equipment ETF (XHE), the iShares U.S. Healthcare Providers ETF (IHF), the iShares U.S. Medical Devices ETF (IHI) and the Invesco DWA Healthcare Momentum ETF (PTH)
From Contrarian Outlook
Investors tend to get scared of healthcare and biosciences stocks during times of broader market unease, but every once in a while, they ignore the panic and focus on the lifesaving innovations this sector can provide.
Right now is clearly one of those times. Despite recent market panics in the broader sector, there is one clear trend: healthcare, after starting off 2018 on a shaky footing, is back with a vengeance, and these funds are crushing the competition.
That’s why the Invesco S&P SmallCap Health Care ETF (PSCH) is the biggest fund winner of 2018 so far, though many other healthcare funds have clocked impressive returns, too:
If you missed the health care wave and want to jump in, PSCH, as well as the SPDR S&P Health Care Equipment ETF (XHE), the iShares U.S. Healthcare Providers ETF (IHF), the iShares U.S. Medical Devices ETF (IHI) and the Invesco DWA Healthcare Momentum ETF (PTH) have all crushed the market, with 21.9% average returns for 2018, even before we hit Halloween!
These funds are strikingly similar, focusing on the healthcare sector broadly (which includes everything from medical equipment to drugs and hospitals), though XHE and IHI are the exceptions as a device-only pure plays. What they have in common is a belief that many innovations in pharmaceuticals and healthcare are starting now—and there are identifiable companies that will profit.
Brett Owens, Contrarian Outlook, BNK Invest Inc., 500 North Broadway, Suite 265, Jericho, NY 11753 USA, 516-620-4294, info@bnkinvest.com, October 29, 2018