The healthcare sector and related exchange traded funds are deteriorating as a Donald Trump presidency leaves the future of the Affordable Care Act, or so-called Obamacare, in question.
The Health Care Select Sector SPDR (NYSEArca: XLV) fell 1.6% Tuesday after dipping 0.5% over the past week and now trading below both its 50- and 200-day simple moving average. The healthcare sector remains one of the worst performing areas of the market, with XLV down 1.8% year-to-date.
Healthcare watchers see a murkier future for the sector as president-elect Trump’s vague statements on health policy have left people guessing where the federal health law will go from here, CNN Money reports.
“It will be repealed and replaced,” Trump said in a Nov. 13 interview on CBS’ 60 Minutes, vowing to preserve popular provisions of the law, such as ensuring people with preexisting conditions can get insurance and allowing young adults to stay on their parents’ health plans.