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4 ETFs to Turbocharge Your Returns

Sector ETFs can enhance overall returns if you choose carefully.

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Health Care Select SPDR

StateStreetSPDR185Health Care Select SPDR (XLV) shouldn’t come as a surprise pick. The Affordable Care Act is forcing people to buy insurance, and that means many folks will have access to big pharma products for the first time. Since this sector ETF holds all the big pharma and big insurance names, it seems like a slam-dunk to outperform as well.

But overall, people will always need health care. Baby boomers are getting older, and technology is driving more products into the market for doctors and hospitals to purchase. Pharmaceuticals will always be aggressively marketed to doctors and patients — you can’t even walk into a doctor’s office without seeing a salesman coming or going. And given the sheer range of health issues out there, biotech research and products will always be in demand.

The XLV’s expense ratio is 0.18%, and top holdings include Johnson & Johnson (JNJ),  Pfizer (PFE), Merck (MRK), Amgen (AMGN), and Biogen Idec (BIIB).

As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at and follow his tweets @ichabodscranium.

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