Opinions
Mike S. Newton, CIM FCSI
iShares US Healthcare E.T.F.
IYH-N
TOP PICK
Jul 03, 2015
Stock price when the opinion was issued
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He thinks the drivers behind the healthcare sector are as powerful today as they were 6 months ago. However, the environment has been changing, where you need to be more of an active manager, understanding which asset mix makes sense. This is a passive ETF, so you are subject to the whims of the largest names. You should have exposure to the sector, but try to identify something that is more actively managed.
Allan Tong’s Discover Picks IYH stock tracks the Dow Jones U.S. healthcare sector and counts (in this order) Johnson & Johnson (9.05% weight), UnitedHealth Group, Merck, Pfizer, AbbVie, Abbott Labs and Thermo Fisher as its top holdings. IYH stock charges a 0.43% MER and pays a 1.21% dividend yield. Like many of its holdings, IYH stock offers a low beta (0.78). Average volumes are a little light at 69,000, but not a worry. YTD, IYH has climbed nearly 10%. Read NEE Stock and BABA Stock: 3 Savvy Election-proof Stocks for our full analysis.
A sleeping giant that he has had in his portfolio for a long time. He recommends that you read Byron Wien’s piece about innovation, biotech, healthcare. This ETF has great holdings. 40% exposure to pharmaceuticals, 25% exposure to the biotech sector, a well-rounded portfolio of names. In the past, these names have been thought of as a defensive kind of positioning, but feels they have slowly moved into the growthy areas of the markets, with huge innovations in medical and biotech. In a rising rate environment, if you are looking for something that is defensive but participates with a bit of growth, this might be a really attractive place to hide out.