“Healthcare, especially with valuations, attractive and solid balance sheets, provide a nice balance of growth opportunities and defensive characteristics,” Sorensen added. “They should outperform the market.”
Looking ahead, sector ETF investors should be wary of what happens during the fiscal cliff and China’s leadership turnover in November. [Election Could Make or Break Health Care ETFs]
ETFs are a good way to invest tactically. The investment tool is a relatively easy and low-cost method to invest tactically with sectors, instead of holding a cuo0ple of securities to gain exposure to a specific area.
For more information on sector funds, visit our sector ETFs category.
Max Chen contributed to this article.