ETF Research and Analysis

by Robert Goldsborough
Investors seeking broad exposure to the domestic healthcare sector can consider iShares U.S. Healthcare Sector Index IYH. Given the sector's lack of economic sensitivity, investors seeking a defensive tilt for a broad portfolio   Read more 

Bull Case

The portfolio is filled with high-quality, wide-moat firms.
The healthcare sector could enjoy a secular tailwind propelled by the aging population.
Utilization rates have turned a corner and are rising slightly. Read more 

Bear Case

At 0.43%, this fund's expense ratio is more than double the expense ratio of similar funds from the Vanguard and SPDR families.
The stock prices of healthcare companies (drug companies in particular) can be very sensitive to the notion of increased governmental regulation of prices. Tackling the rising expense of healthcare is increasingly a priority for politicians. If the government enacts policies that reduce profitability across the healthcare sector (or among drugmakers in particular), then this ETF will suffer.
This fund invests 52% of assets in its top-10 holdings. Thus, the portfolio's risk and valuation are strongly influenced by just a handful of large-cap stocks. Read more 

Making the Momentum Effect Work for Your Portfolio 
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