In addition to XLV, more specialized health care ETFs are gaining new assets. Those funds include the Guggenheim S&P Equal Weight Healthcare ETF (NYSEArca: RYH) and the Market Vectors Pharmaceutical ETF (NYSEArca: PPH), each of which added $75 million last week, according to Bloomberg.
The Fidelity MSCI Health Care Index ETF (NYSEArca: FHLC), which debuted last October as part of Fidelity’s suite of 10 sector ETFs, had $187.4 million in assets under management at the end of July, giving it a slight advantage over the Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC) in the race to be the largest Fidelity sector fund.
XLV and comparable health care ETFs are typically heavy on blue chip pharmaceuticals stocks. For example, Dow components Johnson & Johnson (NYSE: JNJ), Pfizer (NYSE: PFE) and Merck (NYSE: MRK) are XLV’s top-three holdings, combining for over 27% of the ETF’s weight. That has helped as J&J and Merck are two just seven Dow stocks that are up at least 10% this year.
Health Care Select Sector SPDR