Health Care ETFs for an Uncertain Outcome | ETF Trends

We know what you’re thinking about right now. Health care, right? You’re not alone, which is why President Barack Obama held a bi-partisan summit to tackle the issue. While we all wait for a resolution, here are some health care exchange traded funds (ETFs) worth thinking about, too.

What Republicans and Democrats finally agree on (assuming they can agree on anything) may be different from various versions of health care bills of months past. Don Dion for The Street explains that one thing might be certain: ETFs with large allocations to health insurers would face opposition as exorbitant rate hikes come into the spotlight.

The ETF with the largest allocation to health care providers in the United States is iShares Dow Jones U.S. Healthcare Providers Index Fund (NYSEArca: IHF) which is also one of the more liquid. Dion points out that five of the fund’s top 10 holdings are health insurance companies that account for 33.3% of the portfolio. [Why Health Care Is In Favor.]

Perhaps a more diversified fund would make more sense in these uncertain times. No one knows how the final version of the health care bill is going to look.