Healthcare led July job gains with 55,000 new positions, as most other U.S. sectors showed little to no growth. Tap ETFs like XLV and VHT.
Investing in healthcare has long been a cornerstone of defensive, long-term growth strategies. It is, after all, a massive and expanding segment of the global economy.
The life expectancy has increased in the U.S. and worldwide, contributing to healthcare companies retaining their patients for longer periods. Investors pay low fees to hold XLV, since the expense ratio of this financial instrument is only 0.08%. For this year, the top ten holdings of XLV expect a median revenue growth rate of 7.3% and a median EBITDA growth rate of 33.82%.
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June's solid jobs report, with 39K new roles in healthcare, may boost the outlook for ETFs like XLV, IHF, VHT and stocks like HCA, WELL, OHI.
The healthcare segment, and therefore XLV, is, in terms of relative valuations, the most attractive earning-driven sector. The strong dissonance between earnings expectations and price decline highlights a gap that deserves further investigation. Behind a window like this, there's always a risk, and here it's significant, but nonetheless political.
The Health Care Select Sector SPDR ETF (XLV) was launched on 12/16/1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.
The current market environment is the best I've seen in 30+ years, driven by risk management, blending technical and quantitative analysis, and ignoring most headlines. XLV, the Healthcare Sector SPDR ETF, exemplifies the volatile, politically influenced market, making it a challenging yet opportunistic investment landscape. Traditional investment strategies are outdated; focus on price trends, sentiment, and short-term gains rather than long-term holds and fundamental metrics.
The latest financial data, and the lack of confidence from management through earnings so far, points to the growing possibility that the U.S. economy could fall into a recession. With that being said, you want your portfolio to be prepared to keep you from losing huge sums of money.
Healthcare stocks face new risks under Trump, despite their usual defensive reputation.
The Healthcare Sector, represented by XLV and VHT ETFs, offers a defensive investment option amid current market volatility and potential recession risks. Between these two funds, I prefer XLV even better. XLV has shown better performance in past market downturns - compared to both VHT and SP500 - with smaller worst-year losses and also worse drawdowns.
The Health Care Select Sector SPDR® Fund ETF is a highly representative ETF with $38.42 billion in AUM, a competitive expense ratio of 0.09%, and a dividend yield of 1.48%. Despite a 7% price drop since December, healthcare sector EPS expectations remain strong. XLV's forward P/E does not appear to show values significantly outside the historical distribution averages of the past 10 and 30 years.