Shannon Saccocia, CIO, Boston Private iShares US Healthcare E.T.F. IYH-N BUY Mar 03, 2025

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.

Healthcare has had a rough year, but economic softening could lead to a rotation back into this sector.

Healthcare has been weak this year, but next year it can play offence and defence.

Aetna's medical loss ratio (MLR) came in lower than expected and sees that for similar companies and a boost for this sector.