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3 Ways to Play Healthcare’s Hot Stocks

Broad healthcare plays have done well historically, but investors can get some significant juice out of more targeted plays

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Healthcare Hot Stocks – Healthcare Providers, iShares U.S. Healthcare Providers ETF (IHF)

healthcare hot stocks ihfThe iShares U.S. Healthcare Providers ETF (IHF) is another leading segment of the healthcare sector this year.

IHF — which tracks 49 healthcare stocks engaged in insurance, diagnostics and specialized treatment — has gained 13% so far in 2014 and just recently hit a new all-time high.

Hot stocks in IHF such as UnitedHealth Group (UNH) and Wellpoint (WLP) have continued to benefit from the halo effect of the Affordable Care Act along with a growing need for medical services here in the U.S.

Historically, this fund has had less volatility than the market as a whole. According to the iShares website, IHF has a beta to the S&P 500 Index of just 0.65, which indicates smaller price fluctuations than a broad measure of stocks.

IHF charges a modest 0.43% expense ratio and has more than $500 million in total assets.

David Fabian is Managing Partner and Chief Operations Officer of FMD Capital Management. As of this writing, he did not hold a position in any of the aforementioned securities. To get more investor insights from FMD Capital, visit their blog.

Article printed from InvestorPlace Media,

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