FYI: Health care has taken a beating this year, lagging the other sectors by significant margins.
That said, it remains a crucial component in an investor’s portfolio, and the choices to consider are vast, with many subsectors available, such as biotechnology and pharmaceuticals. However, looking at the large cap, broad-based, U.S.-focused funds, there are just nine to consider.
Regards,
Ted
https://www.etf.com/publications/etfr/health-care-sector-has-many-angles?nopaging=1
Comments
I believe that's been said quite regularly about the healthcare sector for the last 10-20 years if not longer. The sector ebbs and flows pretty much like any other.
XLV had a beta of 0.77 vs SPY. XLV's biggest drawdown during this 20 year period was (35.5%) vs SPY's (50.8%)
So, XLV has modestly outperformed the market, with materially lower volatility.
Disclosure: I own a small position in FHLC (the Fido version of XLV), and also a position in IHF (healthcare provider ETF).