Exchange traded funds (ETFs) that invest in pharmaceuticals and healthcare stocks have rallied even though shares of top holding Pfizer (NYSE: PFE), which reports quarterly results Tuesday morning, stumbled last month.
Pfizer shares fell in mid-April on worries over four deaths in a study for its arthritis drug tofacitinib. The stock has recovered and on Monday touched a new 52-week high.
Pfizer accounts for 12% of Health Care Select Sector SPDR Fund (NYSEArca: XLV). The stock is also the second-largest holding in iShares Dow Jones U.S. Pharmaceuticals Index Fund (NYSEArca: IHE) at 9% of the portfolio. The pharma ETF jumped over 8% in April.
iShares Dow Jones U.S. Pharmaceuticals
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.