“Defensive plays, such as health care, are considered safer bets in a shrinking economic environment where demand for their goods and services are less affected. Health care, alongside other defensive sectors such as utilities and REITs, typically offer a dividend and consistent growth,” according to CNBC.
Drug prices remain an issue to monitor, particularly with the new Democratic majority in the House of Representatives.
“Drug pricing should remain a key issue post Midterm elections. Healthcare has fared well in the past year, benefiting from a defensive rotation by investors and strong corporate earnings growth,” said BlackRock in a recent note.
For more information on the market sectors, visit our sector ETFs category.