Stockchase Opinions

Larry Berman CFA, CMT, CTA iShares S&P Global Healthcare XHC-T BUY Jan 20, 2014

Healthcare ETF. Playing the global healthcare space. BMO has one with a currency hedge on it. Thinks Healthcare will be a good bet for the next 20-30 years. You have to look at what is in them. Pharma vs. Biotech are different stories. This one is mostly large Pharma, which has its challenges. Should be bought about $30 where there is good support.

$33.090

Stock price when the opinion was issued

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HOLD

This whole healthcare space is something that you want to own. He owns the iShares US healthcare (IYH-N) which owns all the large US healthcare names. Continues to move along at a very nice clip.

TOP PICK

They like the Canadian hedging. He can play healthcare this way and not take on the product risk. It broke out earlier in the year and now is breaking out again.

TOP PICK

Pullback due to concerns the democratic left will win the election is actually an opportunity to come back into healthcare. Healthcare is always a long-term play. Yield is 1.6%.

PAST TOP PICK

(A Top Pick May 29/19, Up 4%) He prefers owning a basket of diversified, global healthcare stocks, not just Canada. XHC is hedged, so there's no currency risk. He owns it for these two reasons.

WEAK BUY
US Health ETF. We are in a state where we have aging demographics. The healthcare industry is one of the more recession-proof industries. He would suggest unhedged, however.
PAST TOP PICK
(A Top Pick May 29/19, Up 18%) He got back into healthcare late last year because of speculation about a Bernie Sanders victory. He continues to like it long term. The current price is a bit elevated so if buying it, wait a bit. The US election could changes things for healthcare.
COMMENT
These are some of the best ETFs for playing healthcare depending on what strategy you like. These cover global, covered call, yield focused, or actively managed ETFs in the market. The sector is a little overvalued right now so you might want to wait for a pullback. Longterm outlook is favourable.
BUY

HHL-T & XHC-T. HHL-T has a high yield because they do covered calls. He prefers the XHC-T ETF for slightly more yield. HHL-T is a viable option but you are capping the upside.

BUY

Market-cap weighted. MER is 0.66%.