Healthcare ETFs captured 15.1% of sector fund inflows last month, according to AltaVista data, with the Health Care Select Sector SPDR (NYSEArca: XLV) adding almost $590 million. According to Lipper data, the average active large-cap equity fund now includes about 15.8% healthcare stocks, their highest tilt in three years.
The healthcare sector is expected to make up 19.9% of U.S. gross domestic product by 2022 from 17.1% in 2013, according to the Office of the Actuary at the Centers for Medicare and Medicaid services. A recent TD Ameritrade survey shows ETF investors across nearly all age groups have boosted healthcare exposure in recent years and that older investors in particular are increasing their healthcare ETF allocations. [Boomers, Millennials Love ETFs]
Chart Courtesy: AltaVista Research
Tom Lydon’s clients own shares of SPY. Todd Shriber owns shares of XLF.