Daily Stock Opinions and Ratings

Opinions

Liz Young, Head of investment strategy at SoFi ISHARES DOW JONES US MEDICAL DEV.(ETF) IHI-N BUY Aug 11, 2025

Healthcare is not a value trap. It's the worst performing sector this year--and could get worse--but the knife has fallen. If you're looking for something to buy in a market with high valuations and possible headlines from inflation prints, look at healthcare. Healthcare is insulated from interest rate volatility. If you're worried about Trump's attitude to phama, then look at healthcare equipment and services and buy IHI.

Liz Young, Head of investment strategy at SoFi

Unknown

Unlock Rating

$61.110

Stock price when the opinion was issued

E.T.F.'s

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

PAST TOP PICK

(A Top Pick Oct 16/18, Up 16%) It continues to work. Everything is going right with this one. It is not a defensive name and while he likes it, he would not have more than a few percent of it in the market.

BUY

He likes medical devices a lot. The ETF looks good with reasonable MER. Once the rhetoric from the presidential campaign subsides, it’ll probably have more smooth sailing.

DON'T BUY

It's very nichy, though it offers good exposure to healthcare. It's a high-beta play on healthcare, biotech and medical devices. His main worry is uncertainty around the US election, namely Bernie Sanders. If he nationalizes medical care, then this ETF will suffer.

BUY

It specializes in medical devices and equipment. He has held this over a year and a half. He likes the diversification it offers. He is not sure which of the holdings are involved in manufacturing defibrillators.

PARTIAL SELL

This ETF has smashed it over the past 5 years. Medical devices are a hybrid of tech and healthcare, which he really likes. Problem is that market enthusiasm and growth are priced in here already (like the FAANGs). Take profits.

BUY

Not overly bullish on healthcare as a whole, as its growth may be less attractive. Likes medical devices, with a built-in backlog due to Covid. He owns SYK. There should be a significant pickup in procedures over the next 2 years. SYK has strong earnings growth, near a 1-year high. Also look at IHI, the medical devices ETF, packed with companies leading the healthcare sector.

BUY

Happy to own this, outperforming XLV, for instance. It's diversified. ZUH is another option, because it covers pharmas, hospital management and other areas. IHI, as a hospital provider, is pretty good.

BUY ON WEAKNESS

Likes medical devices and health area as society ages. Would buy during a correcting. US and Europe have good healthcare stocks.

BUY

Allan Tong’s Discover Picks IHI's MER is actually higher (at 0.39%) than the yield it pays (0.3%). Like the other names here, IHI trades at a low beta, 0.86 to be precise. So, if you're not buying this for income, what's the growth? Let's look at IHI's largest holdings. TMO offers diversity among lab testing, lab equipment and diagnostics and typically trades at a premium multiple. TMO was a hit in the Covid-testing days, but that stereotype has stuck with them. The company reported a strong quarter a month ago, but that didn't move the needle. TMO shares have been choppy but rangebound all year, but if Wall Street gets gospel on TMO, share should pop. The price target is 20% higher at $674. Read 3 Best U.S. Healthcare ETFs for our full analysis.

Most Recent Experts

Larry Berman CFA, CMT, CTA

ETF Capital Management Inc.

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Joe Terranova

Virtus Investment Partners

Jim Lebenthal

Cerity Partners