Related: A Smart Beta ETF Avenue For Healthcare Stocks
The pharmaceutical and biotechnology sub-sectors may benefit under a Republican president and Congress as the industries are less at risk of price controls that Democrats vowed to impose. However, investors must consider the potential risks to the sector associated with Republicans’ efforts to undo the Affordable Care Act (ACA), also known as Obamacare.
“Similarly, the global healthcare spending will also grow by 4.3% annually through 2020. IYH’s portfolio will benefit not only from rising demand in the United States. Many of the companies in its portfolio such as Johnson & Johnson, Pfizer, Gilead Sciences, Allergen, etc. have a significant portion of their revenues come from outside of the U.S.,” according to Seeking Alpha.
For more information on the healthcare sector, visit our healthcare category.