Credit Suisse “analyzed each of the 36 federally run exchanges plus six of the state-run exchanges to determine which plans offer the lowest cost Bronze and Silver options within each region. We note that this initial analysis relies mainly on price, and we acknowledge other factors such as benefit designs, brand, and network configurations, among other factors, that may influence individual purchasing decisions,” according to the note.
WellPoint (NYSE: WLP), Aetna (NYSE: AET) and Humana (NYSE: HUM) are all top-six holdings in IHF, combining for 17.5% of the ETF’s weight. Along with other ETFs with exposure to this country’s most sweeping health care legislation in multiple generations, IHF has already been soaring. The ETF is up 31.2% this year, indicating that some of the Obamacare gains may already be priced in. [Medical Device ETF Front and Center in Budget Debate]
A increasingly strict regulatory environment and stingier reimbursement policies are among the other potential risks faced by IHF and its 49 components. Still, the demand outlook remains encouraging. One of the main tenants of Obamacare is to make health coverage accessible to those that previously could not afford it.
To that do that, Obamacare will make Medicaid available to more low-income Americans, potentially adding 16 million Americans to Medicaid over the next several years. That scenario could buoy IHF as an attractive long-term ETF bet.
iShares U.S. Healthcare Providers ETF
ETF Trends editorial team contributed to this post.