Price appreciation just keeps on coming for health care exchange traded funds. Twenty ETFs have hit new all-time highs in Thursday’s session and eight are health care-related.
There are two leveraged ETFs on the list of Thursday’s new all-time highs and one is the Direxion Daily Healthcare Bull 3x Shares (NYSEArca: CURE). Even when excluding CURE and the new Fidelity MSCI Health Care Index ETF (NYSEArca: FHLC), 30% of the ETFs hitting new highs today are health care funds.
The ongoing health care sector rally has helped the Health Care Select Sector SPDR (NYSEArca: XLV) top the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) as the best of the nine sector SDPR ETFs this year. Additionally, XLV is just $83 million behind the Energy Select Sector SPDR (NYSEArca: XLE) for the third spot among U.S. sector ETFs as ranked by size. [Bronze Medal Battle for Sector ETF Supremacy]
Biotech ETFs cannot be left out of the conversation. The iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB), the largest biotech ETF by assets, also hit a new high today, garnering upside calls along the way.
Biotechnology (IBB) just scored a new all-time high – this is a break-out from a 2 month consolidation phase. A target of 231 is visible.
— Ralph Acampora CMT (@Ralph_Acampora) November 21, 2013
The biotech ETF ($IBB) is really setting up for a nice breakout if it can clear $214.
— Bespoke (@bespokeinvest) November 21, 2013
Also on the list of Thursday’s new highs is the First Trust Health Care AlphaDEX Fund (NYSEArca: FXH), which uses a smart beta approach. That recipe has worked as FXH is now up more than 43% this year. [8 Overlooked Smart Beta ETFs]
Of the broad market ETFs hitting new highs Thursday, several have significant weights to the health care sector. The PowerShares Dynamic Large Cap Value Portfolio (NYSEArca: PWV) has a 15.4% allocation to the sector, which is overweight by 230 basis points compared to the S&P 500’s health care weight. The Guggenheim S&P 500 Pure Value ETF (NYSEArca: RPV), up 41.1% and also in the new all-time high club, has a weight of nearly 12% to the healthcare sector.