Yuri Khodjamirian, CIO at Tema ETFs, discusses the outlook for the health care sector in 2025.
George Maris, Principal Asset Management CIO, joins 'Money Movers' to discuss why Maris likes certain parts of the healthcare space, if the overall market feels euphoric, and much more.
Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Health Care Select Sector SPDR ETF (XLV) is a passively managed exchange traded fund launched on 12/16/1998.
The healthcare sector, including the SPDRs Select Health Care ETF, faces high uncertainty due to political factors and elevated valuations, prompting a downgrade from hold to sell. My investment approach prioritizes low-risk and tactical decisions. In the current market climate, that produces more short-term gains rather than long-term holds, which increasingly lead to whipsaw situations. XLV's technical indicators suggest more downside risk than upside potential, with a 60% chance of the next 10% move being down, not up. That makes it unattractive for now.
The healthcare sector shows resilience and strong earnings growth prospects for Q3 and Q4. The entire US market is expensive, driven by peak company margins. Healthcare sector showed strong returns during US interest rate cut cycles.
I have decided to continue my Dollar Cost Averaging, or DCA, strategy in the healthcare sector through The Health Care Select Sector SPDR® Fund ETF. The XLV ETF offers a low expense ratio of 0.09%, a “net dividend yield” of 1.39%, and strong long-term performance compared to peers. A “smart DCA” strategy using RSI indicators can optimize entry points, reducing average purchase price and enhancing portfolio alpha.
Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Health Care Select Sector SPDR ETF (XLV) is a passively managed exchange traded fund launched on 12/16/1998.
I am bullish on the Health Care Select Sector SPDR ETF (XLV) due to its attractive valuation, strong technical setup, and favorable seasonality heading into Q4. Eli Lilly (LLY) is a standout component, contributing significantly to XLV's valuation, but the ETF remains appealing even when backing out LLY's high P/E ratio. XLV offers diversified exposure across various healthcare industries, with significant holdings in large-cap stocks like UnitedHealth Group (UNH), Johnson & Johnson (JNJ), and Merck (MRK).
The chart of the Health Care Select Sector SPDR Fund XLV offers two valuable technical analysis lessons.
Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Health Care Select Sector SPDR ETF (XLV), a passively managed exchange traded fund launched on 12/16/1998.
Compelling valuation, innovation in specific growth areas and an aging population as well as increasing healthcare spending are the tailwinds of the medical sector.
Demand for Health Care services is inelastic and expected to grow due to aging population and economic slowdown. XLV ETF provides cheap investment in healthcare companies across various sub-sectors like pharmaceuticals, healthcare equipment, and biotechnology. Healthcare sector offers potential for higher long-term returns, but faces risks like regulation, patent expirations, and pricing pressure.