“Over time, health care has never been the source of a bull market or the cause of a bear market,” Emanuel said.
Supporting the sector, pharmaceutical companies are enjoying a more efficient and streamlined regulatory process, which should help lead to a steady flow of new products. Pharma companies make up 44.9% of XLV’s holdings and 38.7% of VHT.
“The regulatory environment is more favorable than it has been,” Goldsborough said. “We’ve had new development in several areas, plus pharmaceutical companies have been buying biotech startups. The drug development is surprisingly strong.”
For more information on the healthcare sector, visit our healthcare category.
Max Chen contributed to this article.