According to a new analysis from Johns Hopkins Bloomberg School of Public Health, Americans spend more than twice as much on health care per person versus other developed nations, which is a boon to the Direxion Daily Healthcare Bull 3X ETF (NYSEArca: CURE).
CURE seeks daily investment results equal to 300% of the daily performance of the Health Care Select Sector Index. The index CURE tracks includes domestic companies from the healthcare sector, which includes the following industries: pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology.
As investors are looking for safe havens after a tumultuous December of volatility, the health care sector can continue to provide some stability, especially if costs continue to trend upward.
“In spite of all the efforts in the US to control health spending over the past 25 years, the story remains the same,” said lead author Gerard Anderson, a Johns Hopkins professor. “The US remains the most expensive because of the prices the US pays for health services.”
Various Factors Contribute to Spending
According to the study, one single factor can’t be pinpointed to blame for the increase in spending. The higher cost of drugs, compensation to medical staff and expensive medical services are a few of the factors contributing to the rise.