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Healthcare ETFs Outperform Amid Rising Uncertainties

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The war in Ukraine and rising inflation have weighed on investor sentiment lately. As the Federal Reserve is expected to raise rates aggressively to tame inflation, many investors have sought refuge in safer companies that could generate consistent revenues amid rising uncertainties.

Healthcare, which is seen as a defensive sector, has gained from investors’ rush to safety over the past month. Despite the recent outperformance, the sector remains attractively valued as it had lagged the broader indexes over the past two years.

The Health Care Select Sector SPDR Fund (XLV - Free Report) is the most popular product in the space with about $39 billion in assets. The Vanguard Health Care ETF (VHT - Free Report) and iShares U.S. Healthcare ETF (IYH - Free Report) are also worth a look.

United Health (UNH - Free Report) , Johnson & Johnson (JNJ - Free Report) , AbbVie (ABBV), Pfizer (PFE - Free Report) and Eli Lilly (LLY - Free Report) are among the top holdings in these ETFs. To learn more, please watch the short video above.


 

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