After Republicans unveiled their Obamacare replacement, healthcare and biotechnology-related sectors were none too pleased. Nevertheless, exchange traded fund investors can still hedge their bets if they remain bullish on the space.

The healthcare sector has been strengthening in recent weeks, with various healthcare-related ETFs like the Fidelity MSCI Health Care Index ETF (NYSEArca: FHLC), Health Care Select Sector SPDR (NYSEArca: XLV) and Vanguard Health Care ETF (NYSEArca: VHT) up about 5.7% over the past month, compared to the broader S&P 500’s 3.8% gain.

The biotech segment has also rallied, with the iShares Nasdaq Biotechnology ETF (NasdaqGM: IBB), the largest biotechnology exchange traded fund by assets, 5.8% higher and the SPDR S&P Biotech ETF (NYSEArca: XBI), the second-largest biotechnology exchange traded fund, up 7.4%.

Market observers have grown more bullish on the biotech sector as a Republican-led Congress and administration could enact reforms to free cash held overseas for tax reason by large U.S. pharmaceutical companies, which could fuel increased acquisitions and renewed growth in the sector.

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