Still, the other factor that cannot be ignored is emotional sentiment. Of course it is just a hypothetical scenario right now, but if the Republicans seize control of both houses of Congress, even the appearance that they will repeal the Affordable Care Act, likely a trying endeavor, could boost IHI and XHE.

“No matter which party prevails in the Senate race, Obamacare’s medical device tax is another ripe target for dispute and an area of greater possibility for change. Currently, medical device manufacturers or importers must pay a 2.3% tax on the sale price of taxable devices, such as heart defibrillators,2 and they have placed increasing pressure on Republicans to alleviate this tax burden,” said State Street Vice President and Head of Research Dave Mazza in a new research note.

XHE is the smaller of the two medical device ETFs, but more than 20% of its $35.6 million in assets under management have come into the fund this year. The ETF resides just 1% below its 52-week high.

SPDR S&P Health Care Equipment ETF