Health care equipment has been on a tear over the past several years. For instance, every one of the top 10 holdings in SPDR S&P Health Care Equipment ETF (XHE) has appreciated over the past three years. If you owned one of these stocks, or if you owned SPDR S&P Health Care Equipment ETF itself, then theres a good chance that youre reading this with a smile on your face. Yes, money accumulation tends to lead to more smiles. However, past results dont guarantee future success. We need to take a look a detailed look at SPDR S&P Health Care Equipment ETF and determine whether or not its an investment worthy of consideration going forward. <\/p>\n
XHE has its selling points (well get to those soon), but there are also causes for concern. <\/p>\n
One of those causes for concern is an uptrend on weak volume. XHE averages just 2,219 shares traded per day. If XHE saw selling pressure on heavy volume, it would decline much faster than it appreciated. (For more, see: Essential Strategies for Trading Volume.) <\/p>\n
Another cause for concern is that XHE is non-diversified. Therefore, if the health care industry suffered, there would be no hedge. However, this is expected with this type of position, as is an expense ratio, which in this case comes in at 0.35%. XHE does yield 0.31%, which helps ease the pain of the expense ratio. <\/p>\n
That covers the basics. Now lets take a look at the top 10 holdings for XHE, followed by breaking them down, which will reveal some interesting information. <\/p>\n
The 10 holdings for XHE make up 20.75% of its total assets. <\/p>\n
Insulet Corp. (PODD): Sells insulin infusion systems. 2.25% of assets. <\/p>\n
Edwards Lifesciences Corp. (EW): Provides products and technologies that treat structural heart disease and critically ill patients. 2.19% <\/p>\n
CareFusion Corp. (CFN): Medication management, infection prevention, operating room effectiveness, and respiratory care. 2.15% <\/p>\n
Becton, Dickinson & Co. (BDX): Develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. 2.08% <\/p>\n
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Read more here: <\/p>\n
Is It Too Late To Jump In On Health Care?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Health care equipment has been on a tear over the past several years. For instance, every one of the top 10 holdings in SPDR S&P Health Care Equipment ETF (XHE) has appreciated over the past three years. If you owned one of these stocks, or if you owned SPDR S&P Health Care Equipment ETF itself, then theres a good chance that youre reading this with a smile on your face. Continue reading