Health Care ETFs Retreat on DOJ Approval of Aetna-CVS Merger

Furthermore, health care is continuously looking to utilize today’s technology and could be more transformative. allowing for more efficiency in operations, such as the use of blockchain technology. The use of blockchain has allowed the health care sector to start creating specific applications that take advantage of peer-to-peer data distribution, offering better versatility and security over database systems that are currently in use.

As a result, the use of blockchain technology can help pharmacies track their inventory more efficiently, as well as keep better track of dispensing medication to patients. Additionally, blockchain technology can help care providers, such as physicians, specialists, subspecialists, and surgeons share patient information easier for faster expediting.

With those improvements in technology and the price of health care equities relative to value propositions, health care could lead the sectors when a market correction eventually takes place.

“Healthcare really is giving investors a lot of bang for its buck right now,” said Martin Jarzebowski, healthcare sector head at Federated Investors.

As such, a health care ETF like CURE can also be used as a defensive play in addition to a short-term profit tool. As the bull run gets longer in the tooth, health care can serve as a safe-haven sector for investors cycling out of their growth-oriented investments.

“The later we get in the cycle, our enthusiasm for healthcare has only picked up,” Lafferty said.

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