Aggressive traders looking to add some excitement and, potentially increased short-term returns, to the healthcare trade have some ideas to consider including the Direxion Daily Healthcare Bull 3x Shares (NYSEArca: CURE).
CURE seeks to deliver triple the daily returns of the S&P Health Care Select Sector Index. That is the underlying index for the Health Care Select Sector SPDR (NYSEArca: XLV), the largest healthcare ETF.
That index allocates about two-thirds of its combined weight to pharmaceuticals and biotechnology stocks. There are other catalysts to consider, including that the U.S. economy is moving into the late-cycle phase, overall growth may slow and signs of an economic slowdown could pop up. Consequently, investors may also turn to defensive sectors that are less economically sensitive, such as health care.
Politics surrounding the Affordable Care Act (ACA) could be impact CURE this year despite the Trump Administration’s failed effort to repeal the healthcare legislation.