The Health Care Select Sector SPDR (NYSEArca: XLV) is poised to close lower on a year-to-date basis, which would be the the first annual loss for the largest healthcare exchange traded fund since 2008.

However, there are some segments within the S&P 500’s third-largest sector weight that offer rebound potential for 2017.

Until recently, one of the areas strength in the otherwise downtrodden sector had been medical devices stocks and ETFs such as the iShares U.S. Medical Devices ETF (NYSEArca: IHI), the largest dedicated medical devices exchange traded fund.

SEE MORE: A Checkup With the Medical Device ETF

IHI “is an example of a healthcare ETF where looks can be deceiving. As of Dec. 9, IHI is up 10.3% year-to-date, which sounds good compared to other healthcare ETFs, but IHI’s leadership among its peers has been waning. The medical devices ETF is off 3.3% over the past three months, a showing that is 80 basis points worse than XLV over the same stretch,” reports InvestorPlace.

Industry observers argue that medical technology companies can tap into increased healthcare spending among emerging economies while the U.S. market has matured and could experience slower growth. Looking ahead, in the years through 2024, spending growth is projected to average 5.8% and peak at 6.3% in 2020.

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