Smead singled out healthy names like Merck (NYSE: MRK), Pfizer (NYSE: PFE) and Amgen (NasdaqGS: AMGN) that show price-to-earnings ratios below the broader market measures, “fantastic” dividends and free cash flow.

Among the market capitalization-weighted health care ETF options, these three health care names make up about 15% of XLV, IYH, VHT, and FHLC’s underlying holdings.

Investors may also be trying to catch a falling knife after the huge sell-off in the biotech sub-sector as biotechs remain in bear market territory. Year-to-date, the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) plunged 25.7%, Market Vectors Biotech ETF (NYSEArca: BBH) declined 19.9%, SPDR S&P Biotech ETF (NYSEArca: XBI) decreased 29.2% and First Trust NYSE Arca Biotechnology Index Fund (NYSEArca: FBT) retreated 25.7%.

The Direxion Daily S&P Biotech Bull Shares (NYSEArca: LABU) has also grown in popularity, attracting $132.6 million in inflows so far this year, as investors try to time a rebound in biotechnology. [Popular Short-Term Leveraged/Inverse ETF Bets]

Health Care Select Sector SPDR