Vanguard Health Care ETF (ARCA:VHT), Quote.Headers.trade-ideas

Vanguard Health Care ETF

Vanguard Health Care ETF - DNQ

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The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Health Care 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the health care sector, as classified under the Global Industry Classification Standard (GICS). The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.

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RSPH

Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Invesco S&amp;P 500 Equal Weight Health Care ETF (ARCA:RSPH) is a passively managed exchange traded fund launched on 11/01/2006.

Should You Invest in the Invesco S&amp;P 500 Equal Weight Health Care ETF?

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The first night of the Democratic National Convention (DNC) could have investors eyeing sectors like healthcare and automotive after key speeches.

Auto Stocks, Abortion, Health Care In Spotlight At DNC: Joe Biden, UAW President, Women Affected By Roe V. Wade Decision Headline Night 1

iShares Trust S&P Global Healthcare Sector Index Fund

Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Health Care Select Sector SPDR ETF (ARCA:XLV), a passively managed exchange traded fund launched on 12/16/1998.

Should You Invest in the Health Care Select Sector SPDR ETF?

Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Invesco S&amp;P 500 Equal Weight Health Care ETF (ARCA:RSPH) is a passively managed exchange traded fund launched on 11/01/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
<h2>Index Details</h2>
The fund is sponsored by Invesco. It has amassed assets over $953.37 million, making it one of the larger ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. RSPH seeks to match the performance of the S&amp;P 500 EQUAL WEIGHT HEALTH CARE INDEX before fees and expenses.
The S&amp;P 500 Equal Weight Health Care Index equally weights stocks in the health care sector of the S&amp;P 500 Index.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.61%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Bio-Rad Laboratories Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bio#NYSE">BIO</a>) accounts for about 1.82% of total assets, followed by Bristol-Myers Squibb Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmy#NYSE">BMY</a>) and Gilead Sciences Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gild#NASDAQ">GILD</a>).
The top 10 holdings account for about 17.87% of total assets under management.
<h2>Performance and Risk</h2>
So far this year, RSPH has gained about 7.38%, and is up about 12.94% in the last one year (as of 09/12/2024). During this past 52-week period, the fund has traded between $25.30 and $32.39.
The ETF has a beta of 0.84 and standard deviation of 16.29% for the trailing three-year period. With about 65 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Invesco S&amp;P 500 Equal Weight Health Care ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (ARCA:VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (ARCA:XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $18.69 billion in assets, Health Care Select Sector SPDR ETF has $41.93 billion. VHT has an expense ratio of 0.10% and XLV charges 0.09%.
<a href="https://www.zacks.com/stock/news/2335012/should-you-invest-in-the-invesco-s-p-500-equal-weight-health-care-etf-rsph?cid=CS-BENZ-FT-sector_etf-2335012">To read this article on Zacks.com click here.</a>

Should You Invest in the Invesco S&P 500 Equal Weight Health Care ETF?

The Democratic National Convention kicks off Monday in Chicago and includes a highly anticipated speech from President Joe Biden, who stepped aside from the <a href="https://www.benzinga.com/topic/2024-election">2024 presidential election. &nbsp;</a>
Here's a look at Monday's key speakers and what investors should know.
Biden's Speech: Biden will headline the <a href="https://www.benzinga.com/general/politics/24/08/40429245/2024-dnc-preview-democrats-to-rally-around-harris-walz-with-biden-obamas-clintons-and-more-will-">first night of the DNC</a> with a primetime speech emphasizing why Vice President Kamala Harris is fit to be president.
One of the themes of Biden&#8217;s speech is expected to be leadership and putting America above the president's own interest, the Democratic convention committee said in a statement viewed by <a href="https://www.cnbc.com/2024/08/19/dnc-2024-live-updates-day-1.html">CNBC</a>.
"While Donald Trump puts himself first, Democrats are fighting for the American people," the Democratic convention committee said.
First Lady Jill Biden and former Secretary of State Hillary Clinton are also set to deliver prime time speeches Monday, as reported by CNBC.
The Bidens will leave Chicago Monday night for a vacation in California, according to the report. The president will not be on hand for a speech from former President Barack Obama or to officially see Harris accept the nomination on Thursday. 
Did You Know?
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</ul>
Auto Stocks in Focus: United Auto Workers President Shawn Fain is also expected to speak Monday night. The union has endorsed Harris for president.
The UAW took on General Motors Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) in a battle over contract negotiations last year.
Recently, the UAW filed a lawsuit against Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk and Trump over <a href="https://www.benzinga.com/general/politics/24/08/40349586/musk-trump-hit-with-uaw-labor-charges-following-union-busting-remarks-tesla-ceo-suggests-uaw-pre">comments made during an interview</a>.
Fain&#8217;s speech could put the American automotive industry in the spotlight and, depending on what is said, could also put a negative spotlight on electric and imported vehicles.
Harris and Biden have been positive on the growth of electric vehicles and proponents of the sector, which could limit what Fain says about EVs.
The speech could put ETFs that have exposure to auto stocks and electric vehicle stocks in the spotlight. The KraneShares Electric Vehicles and Future Mobility ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KARS#NYSE">KARS</a>) and Global X Autonomous &amp; Electric Vehicles ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRIV#NASDAQ">DRIV</a>) offer investors exposure to electric vehicles.
Abortion, Health Care In Focus: Harris highlighted efforts to cut health care costs and prescription drug costs in a<a href="https://www.benzinga.com/general/politics/24/08/40424431/harris-warns-trump-tax-plan-will-devastate-americans-vows-to-go-after-bad-actors-behind-food-pri"> speech on Friday</a>. Health care could be a big focus Monday night alongside abortion rights.
Three women who had high-risk pregnancies will speak during the first day of DNC events Monday, as <a href="https://www.nytimes.com/2024/08/19/us/politics/harris-dnc-abortion-rights.html">reported </a>by the New York Times.
Each of the women faced hardships due to state abortion bans and the overturning of Roe v. Wade by the U.S. Supreme Court in 2022.
The speeches come as Harris' opponent, Trump, has expressed pride in being the driving force behind the overturning of Roe v. Wade.
Trump has <a href="https://www.benzinga.com/general/politics/24/04/38150115/donald-trump-backs-away-from-national-abortion-ban-this-is-all-about-the-will-of-the-people">shied away from a national abortion ban,</a> saying the decision should be left up to individual states. States deciding abortion rights could lead to more stories like the ones expected to be shared Monday night by women who say their high-risk pregnancies almost killed them, and in some cases they had to leave their own state to get care.
Abortion rights could be a theme of all four nights of the DNC, according to the report, making it one of the biggest election issues highlighted by the Democratic Party at the convention.
Harris' focus on health care costs could put a spotlight on stocks in the sector. Investors could see health care stocks come under pressure if Harris is elected president, which could impact ETFs like the SPDR Select Sector Fund – Health Care (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) and Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>).
<a href="https://www.benzinga.com/news/large-cap/24/03/37430360/womens-history-month-pharmacy-chains-cvs-health-walgreens-to-start-dispensing-abortion-pill-mifepr">Access to abortion pills</a> could also put pharmacies like CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) and Walgreens Boots Alliance (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) in the spotlight.
Check This Out:
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<li>Lawmakers Made Huge Investments This Year. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent081924">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>
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Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Health Care Select Sector SPDR ETF (ARCA:XLV), a passively managed exchange traded fund launched on 12/16/1998.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
<h2>Index Details</h2>
The fund is sponsored by State Street Global Advisors. It has amassed assets over $40.97 billion, making it the largest ETF attempting to match the performance of the Healthcare - Broad segment of the equity market. XLV seeks to match the performance of the Health Care Select Sector Index before fees and expenses.
The Health Care Select Sector Index includes companies from the following industries: pharmaceuticals; health care providers &amp; services; health care equipment &amp; supplies; biotechnology; life sciences tools &amp; services; and health care technology.
<h2>Costs</h2>
When considering an ETF&#39;s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly &amp;&nbsp;Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) accounts for about 13.14% of total assets, followed by Unitedhealth Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>).
The top 10 holdings account for about 55.87% of total assets under management.
<h2>Performance and Risk</h2>
So far this year, XLV has added about 10.92%, and is up roughly 12.74% in the last one year (as of 07/31/2024). During this past 52-week period, the fund has traded between $123.14 and $150.54.
The ETF has a beta of 0.67 and standard deviation of 14.18% for the trailing three-year period, making it a medium risk choice in the space. With about 66 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Health Care Select Sector SPDR ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XLV is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Healthcare ETF (ARCA:IXJ) tracks S&amp;P Global 1200 Healthcare Sector Index and the Vanguard Health Care ETF (ARCA:VHT) tracks MSCI US Investable Market Health Care 25/50 Index. IShares Global Healthcare ETF has $4.14 billion in assets, Vanguard Health Care ETF has $18.31 billion. IXJ has an expense ratio of 0.42% and VHT charges 0.10%.
<a href="https://www.zacks.com/stock/news/2312590/should-you-invest-in-the-health-care-select-sector-spdr-etf-xlv?cid=CS-BENZ-FT-sector_etf-2312590">To read this article on Zacks.com click here.</a>

Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the iShares U.S. Healthcare ETF (ARCA:IYH), a passively managed exchange traded fund launched on 06/12/2000.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>). It has amassed assets over $3.26 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. IYH seeks to match the performance of the Dow Jones U.S. Health Care Index before fees and expenses.
The Russell 1000 Health Care RIC 22.5/45 Capped Gross Index measures the performance of the healthcare sector of the U.S. equity market.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.16%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) accounts for about 11.72% of total assets, followed by Unitedhealth Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>).
The top 10 holdings account for about 53.73% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Healthcare ETF has added roughly 4.12% so far, and is up about 11.73% over the last 12 months (as of 05/30/2024). IYH has traded between $51.45 and $61.96 in this past 52-week period.
The ETF has a beta of 0.69 and standard deviation of 14.45% for the trailing three-year period, making it a medium risk choice in the space. With about 116 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Healthcare ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYH is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (ARCA:VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (ARCA:XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $17.32 billion in assets, Health Care Select Sector SPDR ETF has $38.12 billion. VHT has an expense ratio of 0.10% and XLV charges 0.09%.
<a href="https://www.zacks.com/stock/news/2281071/should-you-invest-in-the-ishares-u-s-healthcare-etf-iyh?cid=CS-BENZ-FT-sector_etf-2281071">To read this article on Zacks.com click here.</a>

iShares Trust Dow Jones US Healthcare Sector Index Fund

Should You Invest in the iShares U.S. Healthcare ETF?

Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Vanguard Health Care ETF (ARCA:VHT), a passively managed exchange traded fund launched on 01/26/2004.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $17.89 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. VHT seeks to match the performance of the MSCI US Investable Market Health Care 25/50 Index before fees and expenses.
The MSCI US Investable Market Health Care 25/50 Index is made up of stocks of U.S. companies within the health care sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.30%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund&#39;s holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) accounts for about 9.95% of total assets, followed by Unitedhealth Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>).
The top 10 holdings account for about 48.87% of total assets under management.
Performance and Risk
The ETF return is roughly 6.87% and is up about 11.87% so far this year and in the past one year (as of 05/20/2024), respectively. VHT has traded between $223.10 and $270.54 during this last 52-week period.
The ETF has a beta of 0.71 and standard deviation of 14.69% for the trailing three-year period, making it a medium risk choice in the space. With about 411 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Health Care ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VHT is an outstanding option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Healthcare ETF (ARCA:IXJ) tracks S&amp;P Global 1200 Healthcare Sector Index and the Health Care Select Sector SPDR ETF (ARCA:XLV) tracks Health Care Select Sector Index. IShares Global Healthcare ETF has $4.04 billion in assets, Health Care Select Sector SPDR ETF has $39.48 billion. IXJ has an expense ratio of 0.42% and XLV charges 0.09%.
<a href="https://www.zacks.com/stock/news/2275801/should-you-invest-in-the-vanguard-health-care-etf-vht?cid=CS-BENZ-FT-sector_etf-2275801">To read this article on Zacks.com click here.</a>

Should You Invest in the Vanguard Health Care ETF?

In an exclusive interview with Benzinga, Gregory DiMarzio, vice president and portfolio manager at Rockland Trust, shared insights on the current market landscape and highlighted potential growth <a href="http://3 Semiconductor Stocks Enjoy Boost Due To AI Demand: 'Outlook Remains Strong Through Next Year'">opportunities for investors</a>.
DiMarzio emphasized the health care sector&#8217;s underperformance year-to-date (YTD) and its potential for a rebound.
<h2 class="wp-block-heading">Healthcare Sector Offers Secular Growth Attributes</h2>
Popular healthcare sector-tracking ETFs, the Health Care Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) and the Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>) are up 6.4% and 6.2% YTD, respectively. The broad market SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has gained 10.6% during that time. Over the past year, XLV and VHT have returned less than half of what the broad-market SPY has earned for investors.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37342374/beyond-tech-and-ai-why-the-sector-hedge-funds-prefer-is-not-the-one-youd-expect">Beyond Tech And AI: Why The Sector Hedge Funds Prefer Is Not The One You&#8217;d Expect</a>
Per DiMarzio, despite economic uncertainties, healthcare offers secular growth attributes that could position it well for the future. &#8220;Considering potential economic nervousness, the health care sector offers secular growth attributes that should help it rebound and either catch up with the overall market or be resistant to the downside should the market pull back,&#8221; he said.
<h2 class="wp-block-heading">Veeva Systems Has A Significant Opportunity For Growth, Says DiMarzio</h2>
One stock within the healthcare sector that DiMarzio is bullish on is Veeva Systems Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEEV#NYSE">VEEV</a>). Veeva Systems is a cloud-computing company specializing in pharmaceutical and life sciences applications. 
DiMarzio highlighted, &#8220;Veeva Systems has a significant opportunity for growth because the industries it serves haven&#8217;t yet taken full advantage of utilizing cloud-based technology such as Veeva's.&#8221;
Veeva Systems&#8217; innovative approach to cloud computing in pharmaceuticals and life sciences positions it as a leader in the industry, he said.
DiMarzio pointed out, &#8220;The total market size globally for cloud computing in pharmaceuticals is expected to reach nearly $60 billion by 2030, a 14.6% CAGR from 2022 &#8211; 2030.&#8221; This robust growth forecast underscores the vast potential for companies like Veeva Systems to capitalize on emerging trends in the health care sector.
Read Next: <a href="https://www.benzinga.com/news/24/01/36842103/did-you-miss-these-3-high-yielding-dividend-stocks-in-health-care-sector-from-wall-streets-most-accu">Did You Miss These 3 High-Yielding Dividend Stocks In Health Care Sector From Wall Street&#8217;s Most Accurate Analysts?</a>
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EXCLUSIVE: Pharma's Cloud Revolution — A $60B Market By 2030 With 1 Stock To Watch

According to the Global Data report, the pharma sector in Q3 2023 witnessed deals worth $28 billion, down 28% from the $54 billion recorded in Q2 2023.&nbsp;
Deal volume fell 9% from 242 deals in Q2 2023 to 221 M&amp;A deals in&nbsp;<a class="editor-rtfLink" href="https://www.globaldata.com/store/report/healthcare-industry-m-and-a-deals-by-theme-quarterly-analysis/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Q3</a>&nbsp;2023.
PricewaterhouseCoopers&nbsp;<a class="editor-rtfLink" href="https://www.pwc.com/us/en/industries/health-industries/library/pharma-life-sciences-deals-outlook.html" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">wrote</a>&nbsp;in its Pharmaceutical and Life Sciences: U.S. Deals 2024 Outlook. &quot;As regulators&#39; perspectives on key deal factors become better understood, there may be a return of larger deals, along with continued interest in the $5 billion to $15 billion deals to fill targeted strategic gaps.&quot;
&quot;Despite some stabilization in the macroeconomic environment and the potential for a soft landing in sight, continued geopolitical and regulatory uncertainty seems a given in 2024,&quot; PWC added in its report.
The pharmaceutical and life sciences sector experienced a notably robust year in 2023, nearing pre-pandemic levels in both M&amp;A deal value and volume, the PWC report added.&nbsp;
Anticipations for 2024 suggest continuing this trend, projecting comparable activity levels within the range of $225 billion to $275 billion across all subsectors.
Notable Deals in 2023
<ul>
<li>Pfizer Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) acquired&nbsp;Seagen Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sgen#NASDAQ">SGEN</a>)<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/12/36198526/pfizer-clears-required-regulatory-hurdles-to-complete-43b-seagen-acquisition" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">&nbsp;for $43 billion.</a></li>
<li>Bristol Myers Squibb &amp; Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/bmy#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BMY</a>) agreed to acquire&nbsp;Karuna Therapeutics Inc&nbsp;KRTX for $330.00 per share in cash, for a total equity value of $14.0 billion, or $12.7 billion net of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/12/36360205/bristol-myers-squibb-scoops-up-schizophrenia-player-karuna-therapeutics-in-massive-14b-deal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">estimated cash acquired</a>.&nbsp;</li>
<li>Merck &amp; Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) acquired&nbsp;Prometheus Biosciences&nbsp;for $200.00 per share in cash for a total equity&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/08/33491400/merck-swings-into-q2-loss-on-prometheus-biosciences-acquisition-charge-but-raises-fy23-revenue-ou" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">value of ~$10.8 billion</a>.</li>
<li>AbbVie Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abbv#NYSE">ABBV</a>) to acquire&nbsp;ImmunoGen Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/imgn#NASDAQ">IMGN</a>) and its flagship cancer therapy Elahere, for $31.26 per share in cash. The transaction values ImmunoGen at a total equity value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/11/36020779/immunogens-flagship-cancer-therapy-draws-abbvies-attention-with-10-1b-deal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $10.1 billion</a>.&nbsp;</li>
<li>AbbVie Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abbv#NYSE">ABBV</a>) will acquire psychiatric and neurological disorders player&nbsp;Cerevel Therapeutics Holdings, Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/cere#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">CERE</a>) for $45 per share in cash with a total equity value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/12/36138161/why-cerevel-therapeutics-stock-is-higher" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $8.7 billion</a>.</li>
<li>Biogen Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/biib#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BIIB</a>) agreed to acquire&nbsp;Reata Pharmaceuticals Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/reta#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">RETA</a>) for $172.50 per share in cash, reflecting an enterprise value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/07/33440534/biogen-bolsters-rare-disease-portfolio-agrees-to-buy-reata-pharmaceuticals-with-enterprise-value-" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $7.3 billion</a>.</li>
<li>Bristol Myers Squibb &amp; Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/bmy#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BMY</a>) agreed to purchase&nbsp;Mirati&nbsp;Therapeutics Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mrtx#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MRTX</a>) at $58.00 per share in cash, amounting to an overall equity valuation of $4.8 billion, with an additional Contingent Value Right at $12.00 per share in cash, offering an extra&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/10/35141493/bristol-myers-squibb-strengthens-oncology-portfolio-with-mirati-therapeutics-5b-deal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">$1.0 billion in value opportunity</a>.</li>
<li>Japanese healthcare company&nbsp;Astellas Pharma Inc&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/alpmy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ALPMY</a>) has agreed to buy&nbsp;Iveric Bio Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/isee#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ISEE</a>) for $40.00 per share in cash for a total equity value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/05/32112605/astellas-pharma-acquires-iveric-bio-for-5-9b-to-focus-on-blindness-regeneration" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $5.9 billion</a>.</li>
<li>Most recently,&nbsp;Bristol Myers Squibb &amp; Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/bmy#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BMY</a>) has agreed to acquire&nbsp;RayzeBio Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ryzb#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">RYZB</a>) for $62.50 per share in cash, for a total equity value of approximately $4.1 billion, or $3.6 billion net of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/12/b36382478/bristol-myers-squibb-adds-premier-radiopharmaceutical-platform-with-acquisition-of-rayzebio" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">estimated cash acquired</a>.</li>
<li>Image by Steve Buissinne from Pixabay</li>
</ul>

ABBV

ALPMY

BIIB

BMED

CERE

FHLC

Harvard Apparatus Regenerative Technology

HART

HTEC

IMGN

ISEE

MDEV

MRTX

PINK

RETA

RYZB

SGEN

Upward Trajectory For Biotech/Pharma M&A: Sector Trends Towards Pre-Pandemic Levels, Forecasts Positive For 2024

The Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) Investment Institute has released its 2024 Outlook, detailing their projections for market levels at the end of 2024 and highlighting their preferred sectors <a href="http://benzinga.com/analyst-ratings/analyst-color/23/12/36290012/s-p-500-likely-to-test-the-5-000-level-jp-morgan-on-where-to-allocate-in-2024">for the upcoming year</a>.
<h2 class="wp-block-heading">S&amp;P 500 Index target 4,600-4,800 in 2024</h2>
Per the <a href="https://sites.wf.com/2024-outlook/">report</a>, Wells Fargo expects global earnings to be challenged in early 2024. They expect a rebound later in the year as the economy reaccelerates. Once investors begin to anticipate an economic and earnings recovery, they expect the S&amp;P 500 to gain into the end of the year. 
Wells Fargo has a 4.600-4,800 year-end 2024 target for the S&amp;P 500 Index. Apart from the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are two other popular ETFs that track the performance of the S&amp;P 500.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36290012/s-p-500-likely-to-test-the-5-000-level-jp-morgan-on-where-to-allocate-in-2024">S&amp;P 500 Likely To &#8216;Test The 5,000 Level&#8217;: JP Morgan On Where To Allocate In 2024</a>
&#8220;Valuations likely will increase in 2024 as markets anticipate an earnings recovery into 2025&#8221; said Darrell L. Cronk, president of Well Fargo Investment Institute and the CIO of Wealth &amp; Investment Institute.
<h2 class="wp-block-heading">Large-Caps Over Mid-Caps</h2>
At times when earnings per share (EPS) is decelerating and the economy is slowing, Wells Fargo favors quality and a more defensive posture within equities. Given their expectations with the earnings challenge in early 2024, Wells Fargo would prefer to allocate into U.S. large-caps over mid-caps and small-caps. 
They have a year-end 2024 target for the MSCI EAFE Index of 2,000-2,200. 
The MSCI EAFE Index follows the performance of large and mid-cap companies in 21 developed market countries globally, representing regions of Europe, Australasia, and the Far East. Notably, it excludes companies from Canada and the U.S. The iShares MSCI EAFE ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EFA#NYSE">EFA</a>) is a popular ETF that tracks the performance of the MSCI EAFE Index.
Analysts at the Well Fargo Investment Institute also prefer developed-market over emerging-market equities. Along with EFA ETF as mentioned above, the Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>) and the iShares Core MSCI EAFE ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#NYSE">IEFA</a>) are 2 other popular developed-markets equity-tracking ETFs.
<h2 class="wp-block-heading">3 &#8216;Favored Sectors&#8217;</h2>
In terms of sector picks, Cronk calls out Health Care, Industrials, and Materials as Wells Fargo&#8217;s &#8220;favored sectors.&#8221; Some popular exchange-traded funds tracking these sectors respectively are:
<ul>
<li>Healthcare: The Health Care Select Sector&nbsp;SPDR&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) and the Vanguard Health Care&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>)</li>
<li>Industrials: The Industrial Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) and the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</li>
<li>Materials: The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and the Materials Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</li>
</ul>
Consumer Discretionary and Real Estate count among the unfavorable sectors.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36301925/emerging-ai-trends-in-2024-blackrock-sees-shift-beyond-semiconductors-cloud-to-mode">Emerging AI Trends In 2024: BlackRock Sees Shift Beyond Semiconductors, Cloud To Model Infrastructure</a>
Photo: Shutterstock

Equities

Broad U.S. Equity ETFs

IEFA

iShares Dow Jones US Aerospace & Defense Index Fund

S&P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 'Favored Sectors' For Next Year

The October nonfarm payrolls report released Friday shows an increase of 150,000 jobs and an <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/11/35594693/much-needed-cooling-off-or-risk-on-rally-ahead-yields-tumble-bonds-gain-after-octob">unemployment rate of 3.9%</a>. Yet the piece of the report that steals the spotlight is the the 33,000-job decline in the motor vehicles and parts manufacturing space, courtesy the <a href="https://www.benzinga.com/markets/equities/23/10/35492334/gm-uaw-reach-tentative-agreement-potentially-putting-an-end-to-costly-6-week-strike">UAW strike</a>.
The 33K-Job Gap: While market watchers are discuss the job report numbers missing expectations pegged at 180,000, the report may not have been a miss if viewed an adjusted basis, accounting for the number of jobs that were purely lost on account of the UAW strike, a one-off factor impacting the October report. 
If the 33,000 jobs in the motor vehicle and parts manufacturing sector are added back in, October nonfarm payrolls total 183,000, exceeding expectations. 
Of course, the figure remains almost half of September levels, but that&#8217;s <a href="https://www.benzinga.com/economics/macro-economic-events/23/11/35570015/october-jobs-report-expected-to-show-dip-heres-how-markets-may-react">attributable</a> to a number of factors.
The Economic Backdrop: The labor market is gradually cooling as a result of multiple strikes, including ones by UAW members, which did put pressure on manufacturing payrolls. Yet job gains were seen in construction, social assistance, leisure and hospitality, government, ambulatory health care services and hospitals, leisure and business services and construction. 
The largest job gains were recorded from the health care sector (58,000) and health care service (32,000). Health care sector-tracking exchange-traded funds such as the SPDR Select Sector Fund &#8211; Health Care (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) and the Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>) were seen gaining 1.04% and 1.26%, respectively, at the time of writing Friday. 
Manufacturing employment fell by 35,000, including the 33,000 decline in motor vehicles and parts.
Read Next: <a href="https://www.benzinga.com/markets/equities/23/10/35492334/gm-uaw-reach-tentative-agreement-potentially-putting-an-end-to-costly-6-week-strike">GM, UAW Reach Tentative Agreement, Potentially Putting An End To Costly 6-Week Strike</a>
Photo via Shutterstock.

Macro Economic Events

Econ #s

Economics

Analysis: Autoworkers Are A Missing Piece In The October Jobs Report. Here's Why That Matters.

A proposed regulatory shift has injected uncertainty into the laboratory-testing market just as startups advance various tests to detect diseases sooner and personalize treatments.
Startups seizing advances in fields such as genomics and artificial intelligence are designing laboratory-developed tests to spot cancer and other illnesses before symptoms arise and to identify optimal therapies.
Lab-developed tests are created and carried out in a single lab.&nbsp;
Labs perform these tests on blood or other specimens shipped to them. Most genetic tests, for example, are lab-developed tests.
The FDA says it historically has exercised its discretion not to regulate such tests, thus allowing startups to introduce the tests quickly and at relatively low cost.
That would change under a proposal the FDA&nbsp;<a class="editor-rtfLink" href="https://www.fda.gov/medical-devices/in-vitro-diagnostics/laboratory-developed-tests" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">issued</a>&nbsp;Friday. The agency, citing concerns about the efficacy of lab-developed tests, said it plans to regulate these diagnostics.&nbsp;
As a result, many lab-developed tests would require review by the FDA before they can be sold.
But the agency&rsquo;s latest salvo leaves lab companies with less certainty about future regulation, complicating investment and product-development decisions, Wall Street Journal&nbsp;<a class="editor-rtfLink" href="https://www.wsj.com/articles/fda-proposal-casts-cloud-over-startups-in-lab-testing-market-57702b2f?mod=latest_headlines" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">noted</a>, citing some observers.
&ldquo;If the path to market becomes longer, less predictable and more expensive, that will affect our ability to invest and will affect the number of new diagnostics that come to market,&rdquo; said&nbsp;Greg Yap, a partner with venture firm Menlo Ventures.
For a startup, performing all tests in its lab appeals because that can simplify quality control, especially for new and complex diagnostics.
In the 1970s and 1980s, the FDA said, many lab-developed tests were lower-risk and used for specialized needs of local populations.&nbsp;
Today, they are applied much more widely, and modern lab tests pose more risks, according to the agency. It noted it is aware of lab-developed tests that led to over- or under-treatment for heart disease, patients being exposed to inappropriate therapies or not getting effective therapies, and incorrect diagnoses of diseases, including Alzheimer&rsquo;s.
The FDA proposes regulating lab-based tests as medical devices, which may impact costs and insurance reimbursements.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

AGNG

Lab-Developed Tests Under FDA Scrutiny: What It Means For Startups

Two significant economic reports took center stage on Friday. The first report focused on the Producer Price Index (PPI) inflation, which was up 0.8% year-on-year in July, a substantial increase from June&#8217;s 0.2%, surpassing analysts&#8217; <a href="https://www.benzinga.com/economics/macro-economic-events/23/08/33747429/producer-price-inflation-surges-0-8-in-july-exceeds-expectations-reigniting-infla">earlier projections of 0.7%.</a>
The higher-than-expected producer inflation sparked some concerns among investors regarding a potential resurgence of inflation risks. However, it&#8217;s worth noting that the Consumer Price Index (CPI) report released on Thursday showed a lower-than-anticipated inflation print in July. 
The University of Michigan&#8217;s consumer sentiment index saw a slight dip from July&#8217;s 71.6 to 71.2 in the first two weeks of August, just shy of expectations set at 71. The index for current economic conditions showed a small growth of 1.1% for the month, while the one for consumer expectations weakened by 1.5%. Interestingly, one-year inflation expectations saw a further decrease from 3.4% to 3.3%, while long-term expectations remained steady.
Also Read: <a href="https://www.benzinga.com/news/23/08/33746941/exclusive-meet-alef-aeronautics-the-startup-aiming-to-replace-your-tesla-or-toyota-with-flying-cars">EXCLUSIVE: Meet Alef Aeronautics, The Startup Aiming To Replace Your Tesla Or Toyota With Flying Cars</a>
Here are some of the immediate reactions to economic data from exchange-traded funds during the Friday morning session:
<ul>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) rose 1.4%, marking the best daily performance among the 11 S&amp;P 500&#8217;s sectors. The top performing stock for the day was Occidental Petroleum Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), up 2.5%, soaring to the highest since early April 2023. </li>
<li>The Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>) rose 0.5%, rebounding after two straight sessions in the red. The top gainer was Tango Therapeutics Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TNGX#NYSE">TNGX</a>) up 20%, after rising over 100% this week. The best contribution came from Ely Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), which alone added 0.1% to the VHT&#8217;s daily performance. </li>
<li>The iShares MSCI Emerging Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EEM#NYSE">EEM</a>) tumbled 1.6% on track for the lowest close in a month. The main draggers were Samsung Electronics Co. Ltd. (OTCPK: SSNLF) and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>). </li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) fell 0.9%, on track for its second-straight week of losses. The worst performer was Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), down 3.7%, but the worst contributor was Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), down 0.9%. </li>
<li>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) similarly dropped 0.9%, hitting a 1-month low. The worst-performing stock in the QQQ ETF was JD.com (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JD#NYSE">JD</a>), down 6.8%, while the main drag to the downside came from Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), down 3.9%. The semiconductor giant has fallen nearly 9% this week, marking its worst weekly performance in a year. </li>
</ul>
Chart: Nvidia Is On Track For The Worst Week In Nearly A Year
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="825" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/11114022/NVDA_2023-08-11_17-36-42_41890-1024x825.png" alt="" class="wp-image-86085" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/11114022/NVDA_2023-08-11_17-36-42_41890-1024x825.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/11114022/NVDA_2023-08-11_17-36-42_41890-300x242.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/11114022/NVDA_2023-08-11_17-36-42_41890-768x619.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/11114022/NVDA_2023-08-11_17-36-42_41890.png 1340w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Now read: <a href="https://www.benzinga.com/markets/equities/23/08/33737762/cathie-wood-continues-to-cash-out-of-nvidia-heres-another-large-cap-ai-levered-stock-ark-sold-th">Cathie Wood Continues To Cash Out Of Nvidia: Here&#8217;s Another Large-Cap AI-Levered Stock Ark Sold Thursday</a>
Photo: Shutterstock

Emerging Market ETFs

LRCX

MSFT

NVDA

SSNLF

TNGX

5 ETFs Responding To PPI Surge And Consumer Sentiment Dip On Friday

JPMorgan Chase recently reported second-quarter results, with both revenue and earnings exceeding Wall Street's expectations. But CEO Jamie Dimon is erring on the side of caution.
"There are still salient risks in the immediate view," he said in the earnings press release.
"Consumers are slowly using up their cash buffers, core inflation has been stubbornly high — increasing the risk that interest rates go higher and stay higher for longer — quantitative tightening of this scale has never occurred, fiscal deficits are large and the war in Ukraine continues, which in addition to the huge humanitarian crisis for Ukrainians, has large potential effects on geopolitics and the global economy."
It's not a rosy picture. In the earnings conference call, Dimon added that "headwinds are substantial and somewhat unprecedented."
So here's a closer look at three key risk factors Dimon highlighted and how investors can hedge against them.
<h2 class="wp-block-heading">High Core Inflation</h2>
In June, the consumer price index (CPI) rose 3% from a year ago, marking the smallest 12-month increase since March 2021. But core CPI — which excludes food and energy — increased 4.8% year over year.
Should core inflation persist at the "stubbornly high" levels Dimon cautioned about, your hard-earned money could progressively lose value because of the eroding effects of inflation.
Legendary investor Jim Rogers recently said that "the best place to be when you have inflation is real assets" like commodities.
Investors can gain exposure to commodities like gold, oil and agricultural products through exchange-traded funds (ETFs) such as SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) and Invesco DB Agriculture Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBA#NYSE">DBA</a>).
Real estate is another popular hedge against rising prices. When inflation occurs, the cost of raw materials and labor goes up, so constructing new properties becomes more expensive, which contributes to the appreciation of property values.
While buying a house can be a challenge in today's environment, new companies have innovated ways for people to <a href="https://www.benzinga.com/alternative-investments/platform/arrived-homes">earn passive income</a> in the real estate market. Here's how to <a href="https://www.benzinga.com/real-estate/22/10/29268850/bezos-backed-startup-lets-you-become-a-landlord-with-100-dollars">invest in rental properties with as little as $100</a> while staying completely hands-off.
<h2 class="wp-block-heading">Check out:</h2>
<ul>
<li>Passive income investments are one of the most trusted methods for riding out a recession so it's no surprise that people are turning to <a href="https://www.benzinga.com/real-estate/23/05/32554601/want-to-grow-your-wealth-passively-these-high-yield-real-estate-notes-might-be-your-holy-grail">high-yield notes that pay a fixed 7.5% to 9%.</a></li>
<li>Blackstone made a $13 billion bet on the growth in student housing. Here's how you can <a href="https://www.benzinga.com/real-estate/23/06/33080017/blackstone-bet-13-billion-on-the-impending-student-housing-price-surge-these-investors-are-doing-the">carve out your own piece of the student housing market with just $500</a>.</li>
</ul>
<h2 class="wp-block-heading">Quantitative Tightening</h2>
Quantitative tightening is a monetary policy that central banks use to reduce the money supply. They accomplish this by selling securities such as government bonds. As market participants buy the securities, the amount of money circulating in the economy decreases. This leads to higher interest rates, which can slow down economic activity.
The U.S. Federal Reserve has embraced quantitative tightening to tame rampant inflation. Since March 2022, the federal funds rate has been increased by 500 basis points.
While many businesses fear high-interest rates because they lead to increased borrowing costs and reduced consumer spending, it can be a different story for banks.
Banks make money from the spread between the interest rates at which they borrow and lend. When interest rates rise, it can lead to an expansion of their net interest margins.
JPMorgan's results illustrate this point. In the second quarter, the bank's net interest income surged 44% year over year to $21.9 billion.
Other than considering bank stocks, investors can also check out savings accounts as a way to ride the rate wave. Because of the Federal Reserve's aggressive rate hikes, there are now plenty of <a href="https://www.benzinga.com/money/best-savings-accounts">high-yield savings accounts</a> to choose from.
<h2 class="wp-block-heading">War In Ukraine</h2>
The Russia-Ukraine war has sent shockwaves across global markets. Geopolitical conflicts could disrupt supply chains, increase energy prices and create widespread uncertainty.
When tensions escalate, investors often turn to safe-haven assets. Gold is a classic example, as it has been considered a store of value in times of crisis.
U.S. Treasury bonds are also worth considering — they are backed by the U.S. government.&nbsp;
In addition, investors may also want to look into defensive stocks, which usually come from sectors less likely to be affected by economic downturns. Notable examples include consumer staples, utilities and healthcare — sectors where established companies experience consistent demand for their products and services, regardless of economic conditions.
Investors can access these sectors via ETFs such as Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), iShares U.S. Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDU#NYSE">IDU</a>) and Vanguard Healthcare ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>). Meanwhile, companies included in these ETFs could provide a starting point for further research.
<h2 class="wp-block-heading">Read next:</h2>
<ul>
<li><a href="https://www.benzinga.com/real-estate/22/10/29268850/bezos-backed-startup-lets-you-become-a-landlord-with-100-dollars">Bezos-Backed Startup Lets You Become A Landlord With $100</a></li>
<li><a href="https://www.benzinga.com/real-estate/23/05/32537165/elon-musk-is-bullish-on-austin-heres-how-to-invest-in-the-citys-growth-before-he-floods-it-with-new">Elon Musk Is Bullish On Austin. Here&#8217;s How To Invest In The City&#8217;s Growth Before He Floods It With New Tech Workers</a></li>
</ul>
Photo: Steve Jurvestson via&nbsp;<a href="https://www.flickr.com/photos/jurvetson/8362210873/in/photolist-dJWvXx-bg6vWP-DjqVuL-q15ADn-cgsPXw-jxvDvY-eF1K2G-jxwPGQ-YDDCdS-eF2b7b-bjFgVe-eF1Q6w-eEY6rh-ZFCTDm-eEYdVY-ZFCVmj-YDDyVj-LPVSd6-ZFCXJW-eEUB38-YCKtHZ-eEUBQr-YDDHYj-YDDNym-chKEyU-chKH5E-chKEbw-chKE9Y-chKGJC-eEUAcH-chKHtQ-chKFVu-chKFsm-eEUJJV-chKEaQ-chKGo9-eEUEiv-eF1P8f-eF1FEo-eESvV2-eEUFUk-eEUDuD-eEURi8-eF1Mv3-eF1ULL-eEUXQc-chKF5q-eEV1hp-eF1VJh-eEYxZh" target="_blank" rel="noreferrer noopener">Flickr Creative Commons</a>

iShares Trust Dow Jones US Utilities Sector Index Fund

'Headwinds Are Substantial': Jamie Dimon Just Flagged A Long List Of Serious Dangers To The US Economy — Here Are 3 'Salient' Risks And How To Defend Against Them

Goldman Sachs&nbsp;compiled research suggesting the global pharmaceutical sector has approximately $700 billion available for M&amp;A and investments.
This significant financial reserve will be crucial as patents for some of the industry&#39;s blockbuster drugs are on the expiration cliff.
The pharmaceutical industry is experiencing strong interest in M&amp;A due to anticipated revenue erosion of approximately $200 billion by the end of the decade.
The latest examples include&nbsp;Astellas Pharma Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/alpmy#OTC">ALPMY</a>) acquiring American firm&nbsp;Iveric Bio Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/isee#NASDAQ">ISEE</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/05/32112605/astellas-pharma-acquires-iveric-bio-for-5-9b-to-focus-on-blindness-regeneration" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">for $5.9 billion</a>,&nbsp;Pfizer Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/03/31319372/seagens-43b-deal-to-double-pfizers-early-stage-oncology-pipeline-seagen-says-is-right-step" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">proposing a $43 billion</a>&nbsp;acquisition of&nbsp;Seagen Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sgen#NASDAQ">SGEN</a>),&nbsp;GSK plc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsk#NYSE">GSK</a>) agreeing to acquire&nbsp;BELLUS Health Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blu#NASDAQ">BLU</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/04/31847715/gsk-to-strengthen-specialty-medicines-and-respiratory-pipeline-with-2b-bellus-health-acquisition" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">for $2 billion</a>, and&nbsp;Merck &amp; Co Inc&nbsp;(NYSE: announcing to acquire&nbsp;Prometheus Biosciences Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rxdx#NASDAQ">RXDX</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/04/31825415/merck-acquires-prometheus-biosciences-for-10-8b-strengthening-its-immunology-pipeline" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">for $10.8 billion</a>.
Obesity drugs are generating significant investor enthusiasm, with forecasts suggesting a total addressable market&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/05/32317535/obesity-drug-achieves-15-weight-loss-zealand-pharma-boehringer-ingelheim-partnered-drug-may-compe" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">exceeding $100 billion</a>.
Promising developments in Alzheimer&#39;s, gene therapy, and other therapeutic modalities were discussed at the conference, indicating substantial innovation and scientific progress in these areas.
The healthcare sector had a challenging start to 2023, recording one of the worst first-half performances in three decades. Factors contributing to this include regulatory &amp; growth concerns, macroeconomic rotations, and investor preference for large-cap technology stocks. Sentiment within the sector remains cautious.
The application of AI and machine learning in healthcare remains an area of interest. Companies are witnessing the positive impact of these&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/06/33039774/ai-in-medical-field-hong-kong-company-takes-first-ai-generated-drug-candidate-to-clinic-targeting" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">technologies on their businesses</a>.
Despite the general caution, there are pockets of&nbsp;<a class="editor-rtfLink" href="https://www.goldmansachs.com/intelligence/pages/pharmaceutical-companies-have-700-billion-for-acquisition.html" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">optimism</a>. Management teams across various healthcare verticals reported strong Q2 procedure volumes, and in the investor survey, medical devices were identified as the most likely area to outperform.&nbsp;
Consumer-facing healthcare segments also demonstrated positivity, with robust demand and continued patient traffic recovery. The biopharma sector shows promise with promising innovation trends.
Policy and regulatory uncertainties emerged as a key concern in several presentations. The Inflation Reduction Act and its impact on drug pricing created&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/06/33081487/biden-administration-releases-revised-guidance-for-medicare-drug-price-negotiation-amid-industry-" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">various uncertain outcomes</a>.
Post-pandemic normalization trends continue to pose challenges for life sciences, tools, and managed care companies, which were beneficiaries during the pandemic.
Photo by Sharon McCutcheon on Unsplash

RXDX

Rydex ETF Trust Rydex S&P Equal Weight Health ETF

From AI to Obesity Drugs - Global Pharma Has $700B For M&A and Investments: Goldman Sachs

The National Institutes of Health (NIH) has&nbsp;<a class="editor-rtfLink" href="https://www.nih.gov/news-events/news-releases/nih-halts-trial-covid-19-convalescent-plasma-emergency-department-patients-mild-symptoms" style="color: rgb(14, 16, 26); background: transparent; margin-top:0pt; margin-bottom:0pt;; color: #4a6ee0;" target="_blank">halted a trial evaluating the safety and effectiveness</a>&nbsp;of COVID-19 convalescent plasma in treating emergency department patients with mild to moderate symptoms.
<ul>
<li>This move comes less than two months after an international trial of convalescent plasma was halted as it found no benefit.</li>
<li>This therapy, also known as survivor&#39;s plasma, uses blood from people who have recovered from the illness. It contains antibodies, or special proteins, generated by the body&#39;s immune system to fight the disease.</li>
<li>An independent data and safety monitoring board met in February for the second planned interim analysis of the trial data and concluded that while the convalescent plasma intervention caused no harm, it was unlikely to benefit this group of patients, the NIH said in a statement.</li>
<li>The U.S. trial had enrolled 511 of 900 participants, either given blood plasma from recovered COVID-19 patients or a placebo.</li>
<li>A recent analysis indicated no significant difference in the proportion of patients who needed emergency treatment, had to be hospitalized or died within 15 days of entering the trial, NIH said</li>
<li>&quot;Even if enrolment continued, this trial was highly unlikely to demonstrate that COVID-19 convalescent plasma prevents progression from mild to severe illness in at-risk emergency department non-hospitalized participants,&quot; said the NIH.</li>
<li>According to NIH, over 100,000 people in the U.S. and many more worldwide have already been treated with plasma therapy since the pandemic began.</li>
</ul>

ADMA

CERS

CSLLY

GRFS

KMDA

LMNL

RNLX

XBIT

COVID-19 Convalescent Plasma Study Shows No Benefit, US NIH Stops Trial

White House Says Administration Has Finalized Medical Insurance Transparency Rule

The Armor US Equity Index ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/armr#NYSE">ARMR</a>), an exchange traded fund that debuted Tuesday, brings a refreshed view to sector investing.
ARMR offers exposure to nine of the 11 S&amp;P 500 sectors, using Vanguard ETFs, which are among the least expensive sector funds. The new follows the Armor US Equity Index.
&ldquo;Rebalanced monthly, the index provides exposure to those sectors of the US economy that score the highest using Armor&rsquo;s proprietary market performance indicator (MPI), which identifies the sectors best positioned to offer strong, long-term performance potential with lower expected downside risk,&rdquo; <a href="https://www.businesswire.com/news/home/20200211005357/en/Investors-Powerful-New-Tool-Designed-Protect-Downside">according to Armor Index</a>.
<h3>Why It&#39;s Important</h3>
Indicating that ARMR views energy and materials as weak sectors at the moment, the new ETF excludes the Vanguard Energy ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vde#NYSE">VDE</a>) and the Vanguard Materials ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vaw#NYSE">VAW</a>).
The other nine ARMR holdings are equally-weighted, led by the Vanguard Information Technology ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vgt#NYSE">VGT</a>) and the Vanguard Health Care ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vht#NYSE">VHT</a>).
&ldquo;Only the sectors that score well in the MPI are included each month, represented by using highly liquid sector ETFs. If no sector appears attractive based on the MPI&rsquo;s results, the index can shift to a focus on US Treasurys,&rdquo; according to Armor Index.
Although the new ARMR is designed to provide downside, it&#39;s current makeup provides plenty of opportunity for upside capture &ndash; assuming the bull market remains in tact &ndash; via ETFs such as VGT and the Vanguard Communication Services ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vox#NYSE">VOX</a>).
All Vanguard sector ETFs are cap-weighted.
<h3>What&#39;s Next</h3>
&ldquo;With the current bull market for US equities now in its second decade, investors are in uncharted territory. It&rsquo;s only prudent that many will be thinking about how their portfolios will respond when the inevitable downturn arrives,&rdquo; <a href="https://armoretfs.com/holdings">said Armor Index founder Jim Colquitt</a>. &ldquo;For investors, protecting against downside risk should be paramount; and for advisors, explaining to clients how you can help them protect against downside risk is going to be an important, and recurring, conversation in 2020.
ARMR charges 0.60% per year, or $60 on a $10,000 investment.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/20/02/15296316/how-to-wade-back-into-value-stocks">Getting Back Into Value Stocks</a>
<a href="https://www.benzinga.com/markets/cannabis/20/02/15296332/why-being-active-matters-with-this-cannabis-etf">Maybe Some Help For This Cannabis ETF</a>

New ETFs

ARMR

There Are A Lot Of Vanguard Sector Funds In One New ETF

With just a day away to the month of May, investors have turned cautious given that seasonality will play a huge role in pushing stocks down for the next six months, as per the old adage &quot;Sell in May and Go Away.&quot; According to this investment saying, the stock market has a long history of weak performance during the summer months (May to October).
	Will May 2018 Pen the Same Story?
	After a blockbuster start, the U.S. stock market was hit by a series of hurdles including inflationary pressures, a faster-than-expected rates hike, political instability in Washington, geopolitical tension, technology sector turmoil and rising yields.
	Additionally, the signal from European Central Bank to end the cheap money era policy anytime soon and the latest round of domestic economic data added to the weakness.
	This is especially true as America&#39;s economic growth slowed to start the year with 2.3% in the first quarter compared with 2.9% in fourth-quarter 2017 driven by weak consumer spending in nearly five years. Domestic demand rose 1.7% -- the slowest in two years -- after rising at a brisk 4.8% pace in the final three months of 2017.
	However, tightening labor market conditions, lower tax rates, strong earnings expectations and increased government spending are expected to spur economic growth in the coming months, thereby resulting in a bullish condition for the stock market. In particular, the massive $1.5-trillion tax cut will create an economic surge, boosting job growth in manufacturing and other sectors, increasing inflation and interest rates. Additionally, it would lead to higher earnings, increased buyback activities and fat dividends.
	Against such a backdrop, it might be foolish to quit the stock market altogether. Instead, investors could follow some ideas that could lead to a winning portfolio during this soft six-month period.
	Focus on Low Volatility ETFs
	As weak historical trends and volatility are expected to play foul in the stock market, low volatility ETFs appear sensible choices. This is because these have the potential to outpace the broader market in bearish-to-neutral market conditions, providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these allocate more to defensive sectors that usually have a higher distribution yield than the broader markets.
	While there are several options in the space, the two most popular ones are PowerShares S&amp;P 500 Low Volatility Portfolio&nbsp;(NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) and iShares Edge MSCI Min Vol USA ETF&nbsp;(BATS:USMV).
	Emphasis on Value ETFs
	Value stocks have proven to be outperformers over the long term and are less susceptible to trending markets. These stocks have strong fundamentals &mdash; earnings, dividends, book value and cash flow &mdash; that trade below their intrinsic value and are undervalued. These have the potential to deliver higher returns and exhibit lower volatility compared with their growth and blend counterparts.
	Some of the Zacks ETF Rank #2 ETFs are Vanguard Value ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>), Schwab U.S. Large-Cap Value ETF&nbsp;(NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>), Vanguard Mega Cap Value ETF&nbsp;(NYSE: <a class="ticker" href="/stock/mgv#NYSE">MGV</a>) and PowerShares Dynamic Large Cap Value Portfolio&nbsp;(NYSE: <a class="ticker" href="/stock/pwv#NYSE">PWV</a>).
	Overweight Dividend ETFs
	The dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is especially true as these stocks offer the best of both these world&#39;s &mdash; safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices. The companies that pay dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis.
	While the dividend space has been crowded, ETFs with stocks having a strong history of dividend growth seem to be good picks. Vanguard Dividend Appreciation ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) and ProShares S&amp;P 500 Aristocrats ETF&nbsp;(BATS:NOBL) have a Zacks ETF Rank #2.
	Invest in Defensive ETFs
	Investors could try out safer avenues and rotate into defensive sectors, like utilities, healthcare, and consumer staples, which generally outperform during periods of low growth and high uncertainty. Additionally, this is a much better option than holding cash. Guggenheim Defensive Equity ETF&nbsp;(NYSE: <a class="ticker" href="/stock/def#NYSE">DEF</a>)&nbsp;could be an excellent choice. This fund offers equal-weight exposure to all the stocks in the index, resulting in a more balanced and diversified portfolio. It helps the portfolio to better weather periods of volatility, while remaining positioned to take advantage of market upswings.
	The other popular ETFs include Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>), Vanguard Consumer Staples ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>), SPDR Health Care Select Sector SPDR Fund&nbsp;(NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>), Vanguard Health Care ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vht#NYSE">VHT</a>) and iShares Dow Jones U.S. Healthcare Sector Index Fund&nbsp;(NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-301485" target="_blank">Click to get this free report</a>

Specialty ETFs

Futures

NOBL

PowerShares Exchange Traded Fund Trust Dynamic Large Cap Value Portfolio

SCHV

PowerShares S&P 500 Low Volatility Portfolio

SPLV

USMV

Don't Sell In May And Go Away: Follow These ETF Strategies

Thanks to encouraging industry trends and hopes of a favorable policy environment, healthcare is one of the top-performing sectors this year. Notably, popular ETFs like Health Care Select Sector SPDR Fund XLV, Vanguard Health Care ETF VHT, iShares U.S. Healthcare ETF IYH and Fidelity MSCI Health Care Index ETF FHLC have gained at least 23% so far (read: <a href="https://www.zacks.com/stock/news/279590/healthcare-etf-vht-hits-new-52week-high">Healthcare ETF Hits New 52-Week High</a>).
	The bullish trend is likely to continue heading into the Q3 earnings season as some big names like Pfizer PFE, Merck MRK, Amgen AMGN, AbbVie ABBV, Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. All these stocks collectively account for 27.6% share in XLV, 26.5% in IYH, 24.2% in VHT and 24% in FHLC.
	Let&#39;s dig deeper into the earnings picture of these companies that would drive the performance of the above-mentioned funds in the coming days:
	According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive <a href="https://www.zacks.com/earnings/earnings-surprise-predictions/">Earnings ESP</a> increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they&#39;re reported with our <a href="https://www.zacks.com/registration/premium/login/?continue_to=%2Fpremium%2Fesp-buy%3Fadid%3Dzp_article_espfilter%26icid%3Dzpi_article_espfilter&amp;icid=zpi_article_espfilter">Earnings ESP Filter</a>.
	Inside Our Surprise Prediction of These Stocks
	Pfizer has a Zacks Rank #3 and an Earnings ESP of +0.94%, indicating a reasonable chance of beating estimates this quarter. The stock has seen no earnings estimate revision for the yet-to-be-reported quarter but delivered an average negative earnings surprise of 0.39% for the past four quarters. It has an impressive Value Style Score of B but a Growth and Momentum Style Score of C and F, respectively, looks disappointing. Pfizer is scheduled to report earnings on Oct 31 before the opening bell.
<div class="chart_embed">
<h3>
		Pfizer, Inc. Price, Consensus and EPS Surprise</h3>
	<a href="https://www.zacks.com/stock/chart/PFE/price-consensus-eps-surprise-chart"> <img alt="" src="https://staticx-tuner.zacks.com/images/charts/c3/1508848664.png" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/PFE/price-consensus-eps-surprise-chart">Pfizer, Inc. Price, Consensus and EPS Surprise</a> | <a href="https://www.zacks.com/stock/quote/PFE">Pfizer, Inc. Quote</a>
</div>
Merck is expected to report results on Oct 27 before the market opens. It has a Zacks Rank #3 and an Earnings ESP of +0.61%. The stock delivered positive earnings surprises in the last four quarters, with an average beat of 8.11% but witnessed a negative earnings estimate revision of four cents over the past 90 days for the to-be-reported quarter. Merck has a strong Momentum Style Score of A, and a Value and Growth Style Score of C each.
<div class="chart_embed">
<h3>
		Merck &amp; Company, Inc. Price, Consensus and EPS Surprise</h3>
	<a href="https://www.zacks.com/stock/chart/MRK/price-consensus-eps-surprise-chart"> <img alt="" src="https://staticx-tuner.zacks.com/images/charts/9e/1508848699.png" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/MRK/price-consensus-eps-surprise-chart">Merck &amp; Company, Inc. Price, Consensus and EPS Surprise</a> | <a href="https://www.zacks.com/stock/quote/MRK">Merck &amp; Company, Inc. Quote</a>
</div>
Amgen carries a Zacks Rank #3 and has an Earnings ESP of -0.41%, indicating less chances of beating estimates this quarter. Though the earnings surprise track over the past four quarters is robust with an average positive surprise of 5.84%, Amgen witnessed negative earnings estimate revision of three cents over the past 90 days for the yet-to-be-reported quarter. The stock has a solid Value and Momentum Style Score of B and A, respectively, but the Growth Style Score of C looks dull. Amgen will report earnings on Oct 25 after market close (read: <a href="https://www.zacks.com/stock/news/275542/should-you-keep-your-portfolio-healthy-with-biotech-etfs">Should You Keep Your Portfolio Healthy with Biotech ETFs?</a>).
<div class="chart_embed">
<h3>
		Amgen Inc. Price, Consensus and EPS Surprise</h3>
	<a href="https://www.zacks.com/stock/chart/AMGN/price-consensus-eps-surprise-chart"> <img alt="" src="https://staticx-tuner.zacks.com/images/charts/f1/1508848728.png" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/AMGN/price-consensus-eps-surprise-chart">Amgen Inc. Price, Consensus and EPS Surprise</a> | <a href="https://www.zacks.com/stock/quote/AMGN">Amgen Inc. Quote</a>
</div>
AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.08%. The company delivered positive earnings surprises in the last four quarters, with an average beat of 0.76% but saw negative earnings estimate revision by a couple of cents over the past three months for the to-be-reported quarter. The stock has a solid Value Style Score of B. But a Growth and Momentum Style Score of C and D, respectively, is unimpressive. The company is scheduled to report on Oct 27 before the opening bell.
<div class="chart_embed">
<h3>
		AbbVie Inc. Price, Consensus and EPS Surprise</h3>
	<a href="https://www.zacks.com/stock/chart/ABBV/price-consensus-eps-surprise-chart"> <img alt="" src="https://staticx-tuner.zacks.com/images/charts/a6/1508848760.png" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/ABBV/price-consensus-eps-surprise-chart">AbbVie Inc. Price, Consensus and EPS Surprise</a> | <a href="https://www.zacks.com/stock/quote/ABBV">AbbVie Inc. Quote</a>
</div>
Gilead is expected to release earnings on Oct 26 after market close. It has a Zacks Rank #3 and an Earnings ESP of +0.23%, indicating a reasonable chance of beating estimates. Gilead delivered positive earnings surprises in two of the last four quarters, with an average beat of 6.38% and saw earnings estimate revision of a nickel over the past three months for the to-be-reported quarter. Though it has a solid Value Style Score of A, a Growth and Momentum Style Score of D and F, respectively, looks ugly (see: <a href="https://www.zacks.com/funds/etfs/etf-categories/Health-Care-ETFs-13">all the Healthcare ETFs here</a>).
<div class="chart_embed">
<h3>
		Gilead Sciences, Inc. Price, Consensus and EPS Surprise</h3>
	<a href="https://www.zacks.com/stock/chart/GILD/price-consensus-eps-surprise-chart"> <img alt="" src="https://staticx-tuner.zacks.com/images/charts/3e/1508848792.png" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/GILD/price-consensus-eps-surprise-chart">Gilead Sciences, Inc. Price, Consensus and EPS Surprise</a> | <a href="https://www.zacks.com/stock/quote/GILD">Gilead Sciences, Inc. Quote</a>
</div>
Bristol-Myers will likely report earnings on Oct 26 before the opening bell. It has a Zacks Rank #3 and an Earnings ESP of +0.79%. The stock delivered positive earnings surprises in three of the past four quarters, with an average beat of 7.99%, and witnessed positive earnings estimate revision of a couple of cents for the to-be-reported quarter. It has a solid Growth Style Score of B but an unfavorable Value and Momentum Style Score of C and D, respectively.
<div class="chart_embed">
<h3>
		Bristol-Myers Squibb Company Price, Consensus and EPS Surprise</h3>
	<a href="https://www.zacks.com/stock/chart/BMY/price-consensus-eps-surprise-chart"> <img alt="" src="https://staticx-tuner.zacks.com/images/charts/7e/1508848821.png" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/BMY/price-consensus-eps-surprise-chart">Bristol-Myers Squibb Company Price, Consensus and EPS Surprise</a> | <a href="https://www.zacks.com/stock/quote/BMY">Bristol-Myers Squibb Company Quote</a>
</div>
Summing Up
	With earnings surprises well in the cards, the healthcare sector is expected to witness earnings growth of 2.2% in the third quarter and has a strong Zacks Rank in the <a href="https://www.zacks.com/stocks/industry-rank/sector/Medical-4">top 44%</a>, suggesting further upside for healthcare ETFs. In particular, all the four ETFs have a Zacks ETF Rank #2 (read: <a href="https://www.zacks.com/stock/news/266713/top-ranked-healthcare-etfs-for-long-term-investors">Top Ranked Healthcare ETFs for Long Term Investors</a>).
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	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=ABBV&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-279889">AbbVie Inc. (NYSE: </a><a class="ticker" href="/stock/abbv#NYSE">ABBV</a>): Free Stock Analysis Report 
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	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=GILD&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-279889">Gilead Sciences, Inc. (NASDAQ: </a><a class="ticker" href="/stock/gild#NASDAQ">GILD</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=AMGN&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-279889">Amgen Inc. (NASDAQ: </a><a class="ticker" href="/stock/amgn#NASDAQ">AMGN</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/stock/news/279889/healthcare-etfs-set-to-soar-as-q3-earnings-unfold?cid=CS-BENZ-FT-279889">To read this article on Zacks.com click here.</a>

Earnings

Previews

AMGN

Healthcare ETFs Set To Soar As Q3 Earnings Unfold

For the moment, the health care sector is the second-largest sector in the S&amp;P 500, well behind technology and just ahead of financial services. That stature is reflected in the world of exchange-traded funds where close to 50 funds provided investors with dedicated health care exposure.
After slumping last year, the health care sector is rebounding in a big way this year. For example, the S&amp;P Health Care Select Sector Index, a widely followed gauge of large-cap health care names, is up more than 18 percent year to date.
&ldquo;With reduced overhangs and improving fundamentals, CFRA thinks investors are in need of a check up on the weight of health care equities in their portfolios,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research </a>director of ETF &amp; mutual fund research Todd Rosenbluth in a note published last month. &ldquo;We upgraded our recommended health care sector exposure to Overweight, from Market Weight. The sector joins industrials and materials as our favored sectors in a well-diversified US equity portfolio.&rdquo;
What follows is a broad overview of some of the most well-known health care ETFs on the market as well as some that have &ldquo;hidden gem&rdquo; status.
<h3>
	Traditional Cap-Weighted Health Care ETFs</h3>
The Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) is the largest health care ETF by assets and the most heavily traded. XLV tracks the aforementioned Health Care Select Sector Index, meaning the ETF is a gauge of many of the most familiar, largest health care names.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10042524/these-leveraged-china-etfs-are-hot">Hot China ETFs</a>
The ETF&#39;s 64 holdings have a weighted average market value of $124.1 billion. Top 10 holdings in XLV include Dow components Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Merck &amp; Co., Inc. (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>). The ETF allocates almost 56 percent of its combined weight to pharmaceuticals and biotechnology stocks.
Similar compositions are found in rival cap-weighted health care ETFs, such as the Vanguard Health Care ETF (NYSE: <a class="ticker" href="/stock/vht#NYSE">VHT</a>) and the Fidelity MSCI Health Care Index ETF (NYSE: <a class="ticker" href="/stock/fhlc#NYSE">FHLC</a>). While FHLC and VHT appear similar to XLV, these are the two cheapest health care ETFs on the market and both funds feature significantly larger lineups than XLV, meaning increased exposure to smaller health care names.
<h3>
	Biotechnology Bounce</h3>
Biotechnology stocks were a big reason why the health care sector disappointed last year, but that scenario has changed in a big way in 2017. Just look at the iShares Nasdaq Biotechnology Index (ETF) (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>). IBB, the largest biotechnology ETF, is up more than 28 percent year to date.
IBB is a good idea for investors that want exposure to the largest biotechnology names, including the likes of Amgen, Inc. (NASDAQ: <a class="ticker" href="/stock/amgn#NASDAQ">AMGN</a>), Celgene Corporation (NASDAQ: <a class="ticker" href="/stock/celg#NASDAQ">CELG</a>) and Biogen Inc (NASDAQ: <a class="ticker" href="/stock/biib#NASDAQ">BIIB</a>).
Investors looking for a different, though still potentially rewarding biotechnology ETF can consider the equal-weight SPDR S&amp;P Biotech (ETF) (NYSE: <a class="ticker" href="/stock/xbi#NYSE">XBI</a>). As an equal-weight biotech ETF, XBI&#39;s weight average market capitalization is just $16.3 billion, indicating that the ETF provides more exposure to the risk/reward proposition offered by some smaller biotechnology stocks.
The PowerShares Dynamic Biotech &amp; Genome(ETF) (NYSE: <a class="ticker" href="/stock/pbe#NYSE">PBE</a>) is a smart beta biotech idea, focusing on traits such as price momentum, earnings momentum, quality, management action and value. PBE holds just 31 stocks.
<h3>
	Leveraged Health Care Ideas</h3>
As the universe of health care ETFs has grown, so has the number of leveraged funds tracking the sector. The Direxion Daily Healthcare Bull 3X Shares (NYSE: <a class="ticker" href="/stock/cure#NYSE">CURE</a>) is the leader among<a href="http://www.direxioninvestments.com/products/direxion-daily-healthcare-bull-3x-etf"> leveraged health care ETFs</a>. CURE looks to deliver triple the daily returns of the aforementioned Health Care Select Sector Index.
There also is not a shortage of leveraged biotechnology ETFs available to aggressive, risk-tolerant traders. Two of the most popular names among geared biotech ETFs include the Direxion Daily S&amp;P Biotech Bull 3X Shares (NYSE: <a class="ticker" href="/stock/labu#NYSE">LABU</a>) and its bearish cousin, the Direxion Daily S&amp;P Biotech Bear 3X Shares (NYSE: <a class="ticker" href="/stock/labd#NYSE">LABD</a>).
LABU looks to deliver triple the daily returns of the S&amp;P Biotechnology Select Industry Index while LABD tries to generate triple the daily inverse <a href="http://www.direxioninvestments.com/products/daily-sp-biotech-bull-3x-shares">returns of that benchmark</a>.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/08/9942441/doctor-says-health-care-etfs-look-healthy">A Positive Outlook For Health Care ETFs</a>

Short Ideas

CELG

CURE

LABD

LABU

PowerShares ETF Trust Dynamic Biotech & Genome Port

Heaps Of Healthy Health Care ETFs

<div style="position:relative;height:0;padding-bottom:56.25%">
	<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/tsD8jNepEE8?ecver=2" style="position:absolute;width:100%;height:100%;left:0" width="560"></iframe></div>
Healthcare was the best performing sector in the second quarter with a 6.3% return, and not far behind tech sector looking at the year-to-date performance. The sector has been outperforming the broader market despite the uncertainty surrounding Trump administration&#39;s plans to repeal and replace Obamacare.
Healthcare stocks have rallied mainly in anticipation of a favorable policy environment. The Trump administration plans to focus on easing regulatory hurdles rather than lowering drug prices, according to a draft executive order obtained by the New York Times. Investors also expect a streamlined and faster drug approval process.
Further, some investors rotated out of pricier tech stocks into healthcare stocks. These stocks were beaten down over the past two years. After trailing the broader market over the past so many months, healthcare sector valuations looked quite attractive.
The longer-term outlook for healthcare remains positive as the sector is a direct beneficiary of the world&#39;s rapidly aging demographic trend. Further, in many developing countries, governments are increasing their healthcare support. And in these countries, healthcare spending is rising from a very low level and has a significant potential to go up as income levels in these countries rise.
Healthcare is a defensive sector and could be a good bet for those worried about rising geopolitical uncertainty.&nbsp; Further, historically healthcare has outperformed the broader market during a period of rising interest rates.
Within the broader healthcare sector, biotech stocks are the best performers of late. But given the volatility associated with biotech stocks, they are more suitable for investors with high-risk tolerance. For long-term investors, ultra-cheap broad healthcare ETFs that are currently ranked Zacks Rank #1 (Strong Buy) are more suitable.
To learn more about the SPDR Health Care Select Sector ETF (ETF:XLV) and the Vanguard Health Care ETF (ETF:VHT), please watch the short video above.
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Zacks Top Ranked Healthcare ETFs For Long Term Investors

Where It Pays To Get Choosy: A Case Study In Stock Selection

Expanding The Hunt For Attractively Valued Equities

Looking For Potential Opportunity In Healthcare Stocks

Healthcare ETFs offer diversified exposure across resilient subsectors and combine defensive qualities with long-term growth potential. Therefore, investors could consider buying strong healthcare ETFs, such as iShares U.S. Healthcare (IYH), Vanguard Health Care Index Fund (VHT), and The Health Care Select Sector (XLV). Read more… Healthcare ETFs are appealing in 2024 because they blend defensive qualities with significant long-term growth potential. They offer diversified exposure to the expanding healthcare sector, including pharmaceuticals, biotechnology, and medical devices, while being a cost-effective investment option. These ETFs capitalize on industry innovation and growth, making them a strong choice for investors.
Hence, investors might consider buying strong healthcare ETFs, such as iShares U.S. Healthcare ETF (<a href="https://stocknews.com/stock/IYH/">IYH</a>), Vanguard Health Care Index Fund ETF Shares (<a href="https://stocknews.com/stock/VHT/">VHT</a>), and The Health Care Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLV/">XLV</a>).
The global healthcare sector is undergoing rapid transformation, fueled by AI, sustainability initiatives, and remote technologies. These advancements aim to boost efficiency, cut costs, and improve patient care. With rising demand, healthcare ETFs present significant growth potential. The global healthcare market is expected to grow at a <a href="https://www.linkedin.com/pulse/healthcare-market-size-2024-2031-global-industry-jjyhf/">22.3% CAGR</a>, reaching $9.01 billion by 2028.
Healthcare ETFs are a solid investment choice in today's uncertain economy due to their diversified exposure. They span various resilient and innovative subsectors within healthcare, which can withstand economic fluctuations. This diversification not only mitigates risk but also provides stability and growth potential as the healthcare industry continues to advance.
Given this favorable backdrop, let's evaluate the three <a href="https://stocknews.com/category/health-biotech-etfs/">Health &amp; Biotech ETFs</a> picks, starting with number three.
ETF #3: iShares U.S. Healthcare ETF (<a href="https://stocknews.com/stock/IYH/">IYH</a>)
IYH is an exchange-traded fund launched by BlackRock, Inc. The fund is managed by BlackRock Fund Advisors and invests in the public equity markets of the United States. It focuses on stocks of companies operating across the healthcare sector and includes growth and value stocks of companies with diversified market capitalizations.
The fund seeks to track the performance of the Russell 1000 Health Care RIC 22.5/45 Capped Index using a representative sampling technique.
With $3.54 billion in assets under management (AUM), IYH's top holding is Eli Lilly and Company (<a href="https://stocknews.com/stock/LLY/">LLY</a>) with a 13.39% weighting, followed by UnitedHealth Group Incorporated (<a href="https://stocknews.com/stock/UNH/">UNH</a>), with a 9.11% weighting, and Johnson &amp; Johnson (<a href="https://stocknews.com/stock/JNJ/">JNJ</a>), with 6.63%. It has a total of 108 holdings.
It has an expense ratio of 0.40%, lower than the category average of 0.52%. It currently has a <a href="https://www.investopedia.com/terms/n/nav.asp">NAV</a> of $66.39. IYH's fund inflows came in at $15.61 million over the past month.
The fund's annual dividend of $0.70 yields 1.06% on the current share price. Its four-year average yield is 1.11%. Moreover, its dividend payouts have increased at a CAGR of 7.5% over the past three years.
IYH has gained 16.8% over the past year and 21% over the past nine months to close the last trading session at $66.38.
IYH's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The ETF's overall A rating equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
IYH has an A grade for Buy &amp; Hold, Peer, and Trade. Of the 42 ETFs in the B-rated <a href="https://stocknews.com/category/health-biotech-etfs/">Health &amp; Biotech ETFs</a> group, it is ranked #7. <a href="https://stocknews.com/stock/IYH/">Click here</a> to access all of IYH's POWR Ratings.
ETF #2: Vanguard Health Care Index Fund ETF Shares (<a href="https://stocknews.com/stock/VHT/">VHT</a>)
VHT is an ETF launched and managed by The Vanguard Group, Inc. The fund invests in the public equity markets of the United States, focusing on stocks of companies operating across the healthcare sector. It includes growth and value stocks of companies with diversified market capitalizations. The fund seeks to track the performance of the MSCI US Investable Market Index (IMI)/Health Care 25/50 using a full replication technique.
With $18.86 billion in AUM, the fund has a total of 418 holdings. VHT's top holding is LLY with a 10.31% weighting, followed by UNH with an 8.43% weighting, and AbbVie, Inc. (<a href="https://stocknews.com/stock/ABBV/">ABBV</a>) with 5.20%.
VHT has an expense ratio of 0.10%, lower than the category average of 0.52%. It currently has a NAV of $288.15. Moreover, its five-day fund inflows came in at $23 thousand.
The fund's annual dividend of $3.56 yields 1.23% on the current share price. Its four-year average yield is 1.29%. Moreover, its dividend payouts have increased at a CAGR of 7.7% over the past three years.
VHT has gained 20.8% over the past nine months and 16.6% over the past year to close the last trading session at $288.10.
VHT's strong fundamentals are reflected in its POWR Ratings. The ETF has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Buy &amp; Hold and Trade and a B for Peer. It is ranked #2 in the same group. To access all the POWR Ratings for VHT, <a href="https://stocknews.com/stock/VHT/">click here</a>.
ETF #1: The Health Care Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLV/">XLV</a>)
XLV is an ETF launched by State Street Global Advisors, Inc. and managed by SSGA Funds Management, Inc. The fund invests in the public equity markets of the United States, focusing on stocks of companies operating across the healthcare sector.
It includes growth and value stocks of companies with diversified market capitalizations. The fund seeks to track the performance of the Health Care Select Sector Index using a full replication technique.
With $42.02 million in assets under management (AUM), XLV's top holding is LLY with a 13.21% weighting, followed by UNH with a 9.45% weighting, and JNJ with 6.88%. XLV has a total of 64 holdings.
XLV has an expense ratio of 0.09%, lower than the category average of 0.52%. It currently has a NAV of $157.23. Its fund inflows came in at $120.53 million over the past three months.
The ETF pays an annual dividend of $2.23, which yields 1.42% on the current price. It has a four-year average dividend yield of 1.55%. Its dividend payouts have increased at a CAGR of 8.2% over the past three years and 8.5% over the past five years.
XLV has gained 16.6% over the past year and 19.7% over the past nine months to close the last trading session at $157.20.
XLV's POWR Ratings reflect its promising prospects. The ETF's overall A rating equates to a Strong Buy in our proprietary rating system.
XLV has an A grade for Buy &amp; Hold, Peer, and Trade. In the Health &amp; Biotech ETFs group, it is ranked first. <a href="https://stocknews.com/stock/XLV/">Click here</a> to access all of XLV's POWR Ratings.
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<hr />
XLV shares were trading at $157.20 per share on Monday afternoon, up $1.08 (+0.69%). Year-to-date, XLV has gained 16.14%, versus a 19.34% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/xlv-vht-iyh-3-top-healthcare-etfs-to-buy-for-diversified-exposure/>3 Top Healthcare ETFs to Buy for Diversified Exposure</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Top Healthcare ETFs to Buy for Diversified Exposure

Direct Indexed Tax Loss Harvesting: Is The Juice Worth The Squeeze?

The healthcare sector is poised for strong growth, driven by ongoing advancements in medical technology, demographic trends, and increased healthcare spending. Thus, to gain exposure to the healthcare sector, one could consider investing in quality ETFs: iShares Global Healthcare (IXJ), Vanguard Health Care (VHT), and Health Care Select Sector SPDR (XLV). Read on… Healthcare ETFs offer exposure to a broad spectrum of companies in areas such as pharmaceuticals, biotechnology, medical devices, and healthcare services. This diversification helps mitigate risk, providing stability even when individual stocks experience volatility.
Given this positive sentiment, investing in healthcare ETFs such as iShares Global Healthcare ETF (<a href="https://stocknews.com/stock/IXJ/">IXJ</a>), Vanguard Health Care ETF (<a href="https://stocknews.com/stock/VHT/">VHT</a>), and Health Care Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLV/">XLV</a>) might be wise choices for broad sector exposure.
The growth of the healthcare services market is anticipated to be driven by factors such as a rising elderly population, accelerated economic development, advancements in technology, evolving lifestyles, improved survival rates, and a higher standard of living. The healthcare services market is projected to grow at a <a href="https://www.verifiedmarketresearch.com/product/healthcare-services-market/">CAGR of 8.3% from 2024 to 2031</a>.
Moreover, biotechnology supports the creation of biopharmaceuticals like monoclonal antibodies and gene therapies, in line with personalized medicine.<a href="https://www.imarcgroup.com/biotechnology-market"> Genetic marker-based diagnostics</a> also enable early disease detection and prognosis, shifting healthcare toward more precise and individualized methods, creating further upside for the healthcare sector.
With that in mind, let's look at the fundamentals of the top three <a href="https://stocknews.com/category/health-biotech-etfs/">Health &amp; Biotech ETFs</a>, beginning with the third choice.
ETF #3: iShares Global Healthcare ETF (<a href="https://stocknews.com/stock/IXJ/">IXJ</a>)
IXJ measures the performance of companies that the index provider deems to be a part of the healthcare sector of the economy and that the index provider believes are important to global markets.
With $4.34 million in AUM, its top holdings are Eli Lilly and Company (<a href="https://stocknews.com/stock/LLY/">LLY</a>) with a 9.2% weighting, UnitedHealth Group Incorporated (<a href="https://stocknews.com/stock/UNH/">UNH</a>) at 6.7%, and Novo Nordisk A/S Class B at 5.4% weight.
The ETF's expense ratio is 0.41%, compared to the category average of 0.52%. IXJ's fund inflows were $24.38 million over the past month. The fund pays an annual dividend of $1.23, which translates to a 1.21% yield at the current price level.
IXJ has gained 11.7% over the past three months to close the last trading session at $101.25. It has a five-year beta of 0.70. The fund's NAV was $100.50 as of September 4, 2024.
IXJ's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The ETF's overall A rating equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The fund has an A grade for Trade, Peer, and Buy &amp; Hold. IXJ is ranked #6 in the <a href="https://stocknews.com/category/health-biotech-etfs/">Health &amp; Biotech ETFs</a> group. <a href="https://stocknews.com/stock/IXJ/">Click here</a> to access all the IXJ ratings.
ETF #2: Vanguard Health Care ETF (<a href="https://stocknews.com/stock/VHT/">VHT</a>)
VHT employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Health Care 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the healthcare sector, as classified under the GICS.
The fund's top holdings include LLY with a 10.3% weighting, UNH at 8.4%, followed by AbbVie, Inc. (<a href="https://stocknews.com/stock/ABBV/">ABBV</a>) with a 5.2% weighting.
VHT's trailing-12-month dividend of $3.56 yields 1.23% on the current price level, while its four-year average dividend yield is 1.29%. Its dividend payouts have grown at a 7.7% CAGR over the past three years.
The fund has an expense ratio of 0.10% compared to the category average of 0.52%. VHT's fund outflows came in at $33.86 million over the past six months. Also, the ETF has a beta of 0.72.
VHT has gained 16.6% over the past year and 20.8% over the past nine months to close the last trading session at $288.10. As of September 4, 2024, VHT had an AUM of $18.90 billion and an NAV of $286.83.
VHT's POWR Ratings reflect solid prospects. Its overall rating of A equates to a Strong Buy in our proprietary rating system.
VHT has an A grade for Buy &amp; Hold and Trade and a B for Peer. Of the 42 ETFs in the same group, it is ranked #2. Get all VHT ratings <a href="https://stocknews.com/stock/VHT/">here</a>.
ETF #1: Health Care Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLV/">XLV</a>)
The Health Care Select Sector SPDR Fund seeks to provide precise exposure to companies in the pharmaceuticals, healthcare equipment and supplies, healthcare providers and services, biotechnology, life sciences tools and services, and healthcare technology industries.
The fund has $42.18 billion in assets under management (AUM). Its top holdings are LLY with a 13.1% weighting, UNH at 9.5%, and Johnson &amp; Johnson (<a href="https://stocknews.com/stock/jnJ/">JNJ</a>) at 6.9%.
XLV has an expense ratio of 0.09%, compared to the category average of 0.52%. Its fund inflows were $459.65 million over the past three months. Also, it has a beta of 0.69.
The fund pays an annual dividend of $2.23, translating to a 1.42% yield at the prevailing price level. Its dividend payouts have grown at an 8.23% CAGR over the past three years. The fund's four-year average yield is 1.55%.
Over the past year, XLV has gained 16.6% to close the last trading session at $156.89. It has also gained 11% over the past three months. The ETF had an NAV of $157.23 as of September 4, 2024.
XLV's solid fundamentals are reflected in its POWR Ratings. The fund has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
XLV has an A grade for Buy &amp; Hold, Peer, and Trade. Among the 42 ETFs in the same group, it is ranked first. To access all of XLV's POWR Ratings, <a href="https://stocknews.com/stock/XLV/">click here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
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<hr />
XLV shares were trading at $156.10 per share on Wednesday afternoon, down $0.80 (-0.51%). Year-to-date, XLV has gained 15.32%, versus a 16.94% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/xlv-vht-ixj-3-healthcare-etfs-to-buy-for-broad-sector-exposure/>3 Healthcare ETFs to Buy for Broad Sector Exposure</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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Vanguard Health Care ETF

Overview

Vanguard Health Care ETF (ARCA:VHT), Quote.Headers.trade-ideas