A bullish sign for XLV is that the ETF is hitting new highs even as Dow component Johnson & Johnson (NYSE: JNJ), the ETF’s largest holding with a weight of 10%, is faltering. The good news is J&J’s downside momentum is waning.
J&J “has lost its downside momentum. If it can move above its declining trendline, it could give the healthcare ETF a big boost and propel it solidly back into the lead relative to the broad market,” according to Barron’s.
XLV has added nearly $607 million in assets this year. Among the nine SPDRs only XLU and the Energy Select Sector SPDR Fund (NYSEArca: XLE) have hauled in more new assets. Entering Tuesday, six of the 10 best sector ETFs and four of the top 10 non-leveraged ETFs overall were healthcare funds.
Health Care Select Sector SPDR
