Monday, 10 July 2017

Why To Monitor Healthcare ETFs?

Posted by Anonymous at 11:51 Labels:

President Donald Trump is facing crucial times ahead. Since he arrived at the White House last January, the Republican leader has struggled to secure one of its most important and controversial promises: stopping the Affordable Care Act, commonly known as Obamacare.

The Affordable Care Act was introduced by former-President Barack Obama as a way to offer health insurance to those citizens with lower resources. But reducing healthcare expenses for the poorest was not the only benefit taken out this bill. Obamacare also limits future premiums increases from insurance companies.

The GOP has heavily criticized Obamacare in many ways, but the most important aspect of it is the intrusion to people’s private lives. Plus, they believe ACA will cut jobs by 2.3 million by 2020.

Following that line of thought, President Trump presented its own American Health Care Act (AHCA), which also faced strong criticism among Democrats and Republicans alike. The bill has been adjusted a few times in order to smooth the approval from Congress, but no luck so far.

Repealing and replacing Obamacare is certainly a top priority for the new administration and market players should continue to look carefully at this matter in order to profit from it.

Given this scenario, the upcoming months might be just perfect to get into the healthcare sector somehow. Unless you’re willing to spend days and nights looking at each company in the market, you should better opt for exchange-traded funds.

1. Health Care Select Sector SPDR ETF

This ETF includes all healthcare stocks in the S&P 500 index. Just as it happens with the S&P 500, stocks are weighted by market capitalization.

2. Vanguard Health Care ETF

It’s one of the most diversified healthcare ETFs out there. It follows 361 companies from the sector and stocks are also organized by market capitalization.

3. iShares Nasdaq Biotechnology ETF

This one is designed to gauge the Nasdaq Biotechnology Index and it includes companies listed in it. In this case, the ETF would only add those with a market cap over $200 million.

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