Health care facilities stocks fall under the jurisdiction of the health care providers and services industry group, which accounts for nearly 42% of FXH’s weight. That’s a positive trait in a year in which the iShares U.S. Healthcare Providers ETF (NYSEArca: IHF) is up more than 28%.
Biotechnology names are FXH’s second-largest industry weight, also a positive in a year in which all five biotech ETFs reside among the 10 best sector ETFs. FXH has also benefited from its mid-cap exposure, a cap spectrum often overlooked by traditional health care ETFs.
“The results show that FXH is relatively diverse in terms of market cap distribution, with 15.8% in giant-cap, 32.6% in large-cap, 45.0% in medium-cap and 6.6% in small-cap stocks. Additionally, FXH is the only health care ETF out of the four that has its highest allocation towards mid-cap stocks. XLV, as a market-cap weighted index, is obviously dominated by giant and large-cap stocks,” according to Seeking Alpha.
First Trust Health Care AlphaDEX Fund
