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“Erin Gibbs, equity chief investment officer at S&P Global Market Intelligence, is focused on bigger sectors as she believes smaller sectors hold too little weight to push the market higher. While info tech is by far the largest sector, making up 20 percent of the S&P 500, Gibbs believes the outlook is better for the second and third largest, financials and health care, respectively,” reports CNBC.
Investors seeking high-quality exposure to the health care industry have a number of options available, including XLV, the iShares U.S. Healthcare ETF (NYSEArca: IYH) and Vanguard Health Care ETF (NYSEArca: VHT).
The financial sector received a boost from Presidential candidate Donald Trump after he proposed dismantling nearly all of Dodd-Frank, the package of financial reforms placed after the global financial crisis.
“More specifically, Gibbs believes that health care will become significant. Not only is that sector the third largest in the broader market, but according to Gibbs, health care’s valuations put it in a great place for expansion,” according to CNBC.
Health Care Select Sector SPDR