Alternatively, investors who want to focus on the increased foot traffic into hospitals can target healthcare services and providers. The iShares U.S. Healthcare Providers ETF (NYSEArca: IHF) and the equal-weight SPDR S&P Health Care Services ETF (NYSEArca: XHS), which includes 36.2% healthcare services, 28.8% health care facilities, 21.4% managed health care and 13.7% healthcare distributors. [Healthcare ETFs: More Americans Are Visiting the Doctor’s Office]
The broad healthcare sector ETFs include less heavy tilts toward the sub-sectors. For example, XLV includes 42.9% pharmaceuticals, 21.1% biotechnology, 19.2% healthcare providers & services, 13.2%, healthcare equipment & services and 0.8% healthcare tech. Additionally, IYH tracks 41.0% pharma, 23.1% biotech, 16.5% healthcare providers & services, 15.2% healthcare equipment & supplies and 3.9% life sciences tools & services.
Moreover, the greater adoption of healthcare insurance may have also strengthened the SPDR S&P Insurance ETF (NYSEArca: KIE) and iShares US Insurance ETF (NYSEArca: IAK). The two broad insurance ETFs include a slight tilt toward the healthcare sector – KIE has a 22.9% position in life & health insurance. The insurance ETFs, though, are mostly gaining this year on the prospects of rising interest rates. [Another Rising Rates ETF Breaks Out]
For more information on the healthcare sector, visit our healthcare category.
Max Chen contributed to this article.