“The Pharmaceuticals sub-industry, which represents the largest weighting within the Health Care sector at about 50%, gained 8.8% year-to-date through August 10, with the majority of the gain within the past 13 weeks where it gained 6.5%, vs. a 3.5% rise in the S&P 1500,” S&P Capital said in the note.
Healthcare valuations remain attractive, at about 20% below historical levels. The iShares Dow Jones US Healthcare Providers Index Fund (NYSEArca: IHF) is up about 11% year-to-date, and has gained due to the Healthcare Reform Law, which should continue to increase the number of U.S. citizens that carry health insurance.
Healthcare Select Sector SPDR
Tisha Guerrero contributed to this article.