LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

This ETF is the best way to play a ‘goldilocks’ health care sector, Bank of America says

Chaim Potok by Chaim Potok
July 28, 2023
in Investing
This ETF is the best way to play a ‘goldilocks’ health care sector, Bank of America says
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


A health care fund with a strong track record could be in a sweet spot for investors who are looking to take some risk off the table, according to Bank of America. Investment and ETF strategist Jared Woodard said in a note to clients that health care equipment and services is an industry that has been a winner for investors in the past and is set up for another strong run. “Since 2006, HCES has been a ‘goldilocks’ trade for investors looking for high-beta healthcare exposure without extreme volatility,” the note said. The firm’s top rated ETF in the space is the iShares Medical Devices ETF (IHI) , which helps investors avoid the volatile biotech stocks found in broader health care sector funds. The IHI has an expense ratio of 0.39%, and its top holdings include Thermo Fisher Scientific and Abbott Laboratories . The fund has a total return of just under 8% so far this year, and has averaged a return of 10.7% over the last five years. Over the past 10 years, the average total return jumps above 15%. IHI 5Y mountain The IHI has averaged a total return of more than 10% over the past five years. Bank of America listed cooling inflation and a potential recession as reasons that medical technology could outperform from here. The ETF is trading at a higher earnings multiple than its historical average, which could be a concern if there is a broad market downturn. However, the industry’s multiple actually looks cheap on a historical basis compared to the broader market, Woodard said. Additionally, the industry has not been particularly popular with investors in recent years, which could reverse and give the fund a boost, Bank of America said. The IHI has seen outflows of $432 million this year, according to FactSet. “2023 could be the third year in a row for HCES ETF outflows despite positive returns YTD (8.5%). In our view, the trade is far less crowded than broad healthcare for investors looking for defensive exposure,” Woodard said. — CNBC’s Michael Bloom contributed reporting.



Source link

You might also like

Wednesday’s big stock stories: What’s likely to move the market in the next trading session

Alphabet, Amazon are buys ahead of earnings results, portfolio manager says

Brokerages are likely to slash yields on cash. These firms are still offering solid rates

Share30Tweet19
Previous Post

Warner Bros. Discovery’s stock gets a ‘Barbie’ boost as movie’s box office exceeds $500 million

Next Post

Stocks making the biggest moves midday: Intel, Roku, Sweetgreen, Ford & more

Chaim Potok

Chaim Potok

Recommended For You

Wednesday’s big stock stories: What’s likely to move the market in the next trading session
Investing

Wednesday’s big stock stories: What’s likely to move the market in the next trading session

July 23, 2025
Alphabet, Amazon are buys ahead of earnings results, portfolio manager says
Investing

Alphabet, Amazon are buys ahead of earnings results, portfolio manager says

July 22, 2025
Brokerages are likely to slash yields on cash. These firms are still offering solid rates
Investing

Brokerages are likely to slash yields on cash. These firms are still offering solid rates

July 22, 2025
Josh Brown thinks this brokerage stock is going ‘way higher’
Investing

Josh Brown thinks this brokerage stock is going ‘way higher’

July 22, 2025
Next Post
Stocks making the biggest moves midday: Intel, Roku, Sweetgreen, Ford & more

Stocks making the biggest moves midday: Intel, Roku, Sweetgreen, Ford & more

Related News

Volvo backtracks on its 100% EV pledge: Here’s what the new plan looks like

Volvo backtracks on its 100% EV pledge: Here’s what the new plan looks like

September 4, 2024
How Chelsea could line up vs Arsenal after Havertz injury boost

How Chelsea could line up vs Arsenal after Havertz injury boost

May 1, 2023
Evercore ISI says look for these value names with momentum to outperform as inflation falls

Evercore ISI says look for these value names with momentum to outperform as inflation falls

February 6, 2023

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?