Time To Make A Long-Term Bet On Healthcare (XLV)
The ETF Professor likes to find trading ideas that appeal to investors with a variety of time horizons and today's long-term idea is a bet on healthcare. No, not the embattled insurers, but high-quality names like Abbott Labs (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ).
The Health Care Select Sector SPDR ETF (NYSE: XLV) is the ETF that will benefit from increased demand for healthcare services and new blockbuster drugs coming to market. The Professor likes the mix of big pharma and biotech in XLV. XLV also holds Amgen (Nasdaq: AMGN) and Gilead Sciences (Nasdaq: GILD) among its top-10 holdings.
Buying XLV is a bet on an aging U.S. population and on high-quality names. XLV has tacked on 2% in the past week and buyers have been outnumbering sellers over the past several days so you may not want to wait for XLV to run much higher.
