The overall pharmaceutical industry has also taken a greater interest in so-called orphan drugs due to their strong protection, which helps support reliable pricing power, especially as the industry faces questions over high pricing over primary care products.
Related: Healthcare ETFs Ready to Rally
The impact of a Trump presidency on healthcare stocks remains to be seen. Candidate Trump rebuked Obamacare and if successful in that effort, there would likely be some effect on diversified healthcare ETFs due to their exposure to health insurance providers.
“Volatility surrounding the U.S. election has caused health care investors to become concerned about what the future outlook for the sector. Many have started to allocate capital to other areas of the market and the shift in the long-term uptrend is clearly evident,” adds Investopedia.
Health Care Select Sector SPDR
