As an international ETF, IRY is bound to be light on biotechnology stocks and it is with a weight of just 5.6% to that high-flying group. A comparable U.S.-focused health care ETF is apt to have a biotech weight in excess of 20%. IRY is also light on health care services providers, one of the top-performing industry groups in the U.S. this year.
Cementing the notion that IRY is a hidden gem among strong dollar plays is the ETF’s over 73% weight to pharmaceuticals stocks. In the case of this fund, these are blue-chip names, the international equivalents of Johnson & Johnson (NYSE: JNJ) and Pfizer (NYSE: PFE). Swiss pharmaceuticals giants Novartis (NYSE: NVS) and Roche along with Sanofi (NYSE: SNY) combine for over 26% of IRY’s weight, which leverages the ETF to weakness in the Swiss franc and euro. [More Upside for Healthcare ETFs]
British stocks are 14.1% of IRY’s weight. It does pay to remember that the U.K. is one of the best, if not the best, ex-U.S. dividend market. In 2014, U.K. firms once again offered excellent dividend growth. Payouts there surged 31% to $135 billion, according to Henderson Global Investors.
SPDR S&P International Health Care Sector ETF
