IYH iShares Dow Jones US Healthcare Index - May is highlighted below to illustrate the annual growth of IYH.
5/02 – 5/03 ….. -7%
5/03 – 5/04 ….. +15%
5/04 – 5/05 ….. +2%
5/05 – 5/06 ….. Flat
5/06 – 5/07 ….. +18%
IYH Moving averages:
50 day | $68.53
200 day | $66.43
(Click on image for larger view)
The healthcare sector has been volatile and investors should use caution.
By DE Smith of MyPortfolioView
The XShares family of health exchange-traded funds have both strong supporters and equally sharp critics. It comes down to this question; are they too focused and specialized for the average investor?
So far there are nine HealthShares on the market including: metabolic-endocrine disorders; autoimmune-inflammation; cancer; cardiology; gender health; respiratory/pulmonary; neuroscience: and ophthalmology.
Each has a portfolio of between 20 and 25 stocks, mostly in relatively small companies. The median market value of companies in most of the ETFs is less than $2bn. Instead of the usual market cap weighting of companies in the ETF basket, the companies start with an equal weighting and will be rebalanced regularly
John Authers of the Financial Times walks through the logic of the Healthshares and cites some of the impressive numbers that suggest that XShares and its backers may well have found a product for which there will be a demand. But he cautions that private investors without specialized knowledge, however, should almost certainly avoid them except in small dosages. Perhaps investors should be required to get a prescription for HealthShares from their financial advisors.
These ETFs can make you a lot of money in a short time but use with care and consider them as venture capital.
By Carl Delfeld of the Chartwell ETF Advisor
Among the more than 20 health-care ETFs currently available, many are broadly based within the health-care market. But others now focus on biotechnology or the pharmaceutical areas, or take an even more granular approach, specializing in cardiac devices or patient-care services. Read More
Health Care Select Sector SPDR (XLV) has established itself this year in a solid column of X's. The chart below shows it recently breaking through its bearish resistance.
Moving Averages: 50 day 34.14 | 200 day 33.14
Dividend Yield: 1.32%
By DE Smith of MyPortfolioView
The XSHARES family of exchange-traded funds has added two new Healthshares ETFs to its stable of sub-sector funds. HealthShares ETFs are organized into therapeutic "Verticals" and represent specific areas of the healthcare, life science and biotechnology industries. Each Vertical tracks a collection of large, mid and small-cap stocks that addresses a distinct sub-segment of healthcare.
In a press release, the company noted that adding the HealthShares European Drugs (HRJ) and the HealthShares Infectious Disease (HHG) will bring the total number of publicly traded HealthShares ETFs to 16. Each HealthShares ETF is comprised of 22-25 stocks, except the HealthShares Composite which has 80 stocks, and tracks an index that is based on a proprietary intellectual model developed by XShares.
By Carl Delfeld of the Chartwell ETF Advisor
