7 Healthcare ETFs To Consider

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Healthcare stocks seem to be favored right now by a lot of large cap growth managers. So in this post, I will be looking at 7 ETF options for healthcare coverage.

Healthcare Select SPDR (XLV)

This fund looks to match the performance of the Health Care Select Sector Index. The ETF invests in at least 95% of the same securities as the index. It has the distinction of being the largest ETF in its category. The fund which has a tiny expense ratio of 0.15%, holds mostly large and mega cap stocks and has an annualized three year return of 28.3%. The top sub-sectors include pharmaceuticals and healthcare equipment and supplies with current top holdings including Johnson & Johnson, Pfizer Inc, Merck & Co Inc, Gilead Sciences Inc, Actavis Plc, Amgen Inc, UnitedHealth Group Inc, AbbView Inc, Bristol-Myers Squibb Co, and Medtronic Plc.

Vanguard Health Care Index (VHT)

This fund looks to match the performance of the MSCI US Investable Market Index (IMI)/Health Care 25/50. The ETF invests in almost all of the same securities as the index. The fund which has an expense ratio of 0.12%. It holds small, mid cap and large stocks with an annualized three year return of 29.0%. The top sub-sectors include pharmaceuticals, healthcare equipment and supplies and healthcare providers. Top holdings include Johnson & Johnson, Pfizer Inc, Merck & Co Inc, Gilead Sciences Inc,

Amgen Inc, Actavis Plc, UnitedHealth Group Inc, Bristol-Myers Squibb Co, Medtronic Plc, and AbbView Inc.

Guggenheim S&P 500 Equal Weight Health Care (RYH)

This fund looks to match the performance of the S&P 500® Equal Weight Index Health Care Total Return. The index and ETF equally weight the healthcare stocks in the S&P 500. The fund which has a higher expense ratio of 0.40%. It holds large cap stocks with an annualized three year return of 30.1%. The top sub-sectors include pharmaceuticals, healthcare equipment and supplies and healthcare Providers. Top holdings include Humana Inc, Mylan N.V., Regeneron Pharmaceuticals, Cigna Corp, Perrigo Co. Plc, AbbVie Inc, Aetna Inc, HCA Holdings Inc, Universal Health Services and Gilead Sciences Inc.

Market Vectors Biotech (BBH)

This fund looks to match the performance of the Market Vectors® US Listed Biotech 25 Index. This concentrated ETF holds mid cap and ADR stocks (foreign stocks listed on a U.S. Exchange). The fund has an expense ratio of 0.45%. It has an annualized three year return of 43.1%. The top sub-sectors include pharmaceuticals and biotechnology. Top holdings include Gilead Sciences Inc, Amgen Inc, Celgene Corp, Biogen Inc, Regeneron Pharmaceuticals, BioMarin Pharmaceuticals, Illumina Inc, Vertex Pharmaceuticals, Incyte Corp and Alexion Pharmaceuticals.

Ishares U.S. Healthcare ETF (IYH)

This fund looks to match the performance of the Dow Jones U.S. Health Care Index. This fund is the opposite of concentrated as its holds at least 100 stocks in the ETF. The fund has a fairly expense ratio of 0.45% for a general healthcare index. It has an annualized three year return of 28.6%. The top sub-sectors include pharmaceuticals, healthcare equipment, and healthcare providers. Top holdings include Johnson & Johnson, Pfizer Inc, Merck & Co Inc, Gilead Sciences Inc, Actavis Plc, Amgen Inc, AbbView Inc, UnitedHealth Group Inc, Bristol-Myers Squibb and Medtronics Plc.

SPDR S&P Biotech (XBI)

This fund looks to match the performance of the S&P Biotechnology Select Industry Index. The fund uses a sampling strategy, by investing a portion of the stocks in the index. The fund has an expense ratio of 0.35% and a market cap of $8.86 Billion. It has an annualized three year return of 43.4%. The top sub-sectors include biotechnology and pharmaceuticals. Top holdings include Synageva BioPharma, ImmunoGen Inc, Sarepta Therapeutics Inc, Alder Biopharmaceutical, bluebird bio, Inc, Ultragenyx Pharmaceuticals, Dyax Corp, Momenta Pharmaceuticals, Esperion Therapeutics and Prothena Corp Plc.

Market Vectors Pharmaceutical ETF (PPH)

This fund looks to match the performance of the Market Vectors® US Listed Pharmaceutical 25 Index. This is another concentrated ETF with only 26 holdings. The fund has an expense ratio of 0.35% and a market cap of $128.8 Billion. It has an annualized three year return of 27.6%. The top sub-sectors include pharmaceuticals and drug retailers. Top holdings include Novartis AG, Johnson & Johnson, Pfizer Inc, Novo Nordisk A/S Class B, Valeant Pharmaceutical, Merck & Co Inc, AbbVie Inc, Actavis Plc, Sanofi and Eli Lilly and Co.