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 Traditional investment strategies are outdated; focus on price trends, sentiment, and short-term gains rather than long-term holds and fundamental metrics.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.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Here are some of the recent references I have made about Biotechnology Sector (IBB) and the potential for a rally. Incidentally, Moderna (MRNA) is so oversold on a monthly timeframe, it should be on your radar.
Launched on 12/16/1998, the Health Care Select Sector SPDR ETF (XLV) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Broad segment of the equity market.
I maintain a buy rating on the Health Care sector, highlighting XLV as the second-best performing S&P 500 sector YTD with broad-based gains. Global fund managers have increased allocations to Health Care, signaling renewed optimism and a healthier sector outlook since my Q3 2024 analysis. XLV offers compelling valuation at 16.5x earnings with a PEG ratio of 1.5x, strong dividend growth, and a diversified portfolio leaning towards large-cap value.
XLV offers a rare combination of stability and growth potential through its diverse investments in the healthcare sector, justifying a buy rating. The fund's broad exposure across various healthcare sub-sectors and market capitalizations ensures low-risk concentration and a stable portfolio. Economic and demographic factors, including technological advancements and an aging population, are key growth catalysts for the healthcare sector.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.