Just a dozen ETFs hit record highs on Friday. Extending its 2019 gains to 15%, the iShares US Medical Devices ETF (NYSEArca: IHI) was one of the ETFs hitting all-times on Friday. That as the broader healthcare sector is the worst-performing group in the S&P 500 this year.
Investors have been diving deeper into the sector to gain targeted exposure to industries like medical devices, one of the fastest-growing segments of the broader healthcare space.
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.
Some of IHI’s 56 holdings are showing signs of breaking out.
Equity strategist Matt Maley said in a CNBC interview “that his top picks in the sector are Boston Scientific, Danaher and Abbott Laboratories. Danaher and Abbott’s stocks both hit 52-week highs on Friday.”