Health-care stocks are hot.<\/p>\n
The group hit record highs on Monday after a potential coronavirus vaccine developed by Oxford University and AstraZeneca showed promising responses in an early trial, creating a lift in the relatively broad health-care space.<\/p>\n
In addition to the Health Care Select Sector SPDR Fund (XLV) reaching records, the market-cap-weightediShares Nasdaq Biotechnology ETF(IBB) and the equal-weighted SPDR S&P Biotech ETF (XBI) hit historic highs on Monday.<\/p>\n
Investors seeking exposure to these rallying groups should understand each ETF's makeup, Todd Rosenbluth, senior director of ETF and mutual fund research, said Monday on CNBC's \"ETF Edge.\"<\/p>\n
\"With XBI, the equal weight, you have more exposure to small and mid-cap companies,\" Rosenbluth said. \"You're going to see a wide array of companies that are trying to come up with a vaccine or a treatment for the coronavirus, so, you can spread that wealth around, you can spread that risk around with XBI.\"<\/p>\n
XBI holds 133 names across the biotech space. It has climbed nearly 27% year to date, including a more than 1% gain on Monday.<\/p>\n
IBB holds 207 biotech stocks and is up nearly 21% this year, also including an over 1% gain on Monday. Its top holdings by weight are Amgen at roughly 8%, Vertex Pharmaceuticals at 7.5%, Gilead at about 7% and Regeneron at around 6%.<\/p>\n
\"IBB is more concentrated in some of the heavyweights within the biotechnology industry, so, you have a little bit more safety in that diversification of those four or five different names,\" Rosenbluth said. \"But [these are] two really strong-performing ETFs this year, and we like health care at CFRA. We think there's more room to run.\"<\/p>\n
Disclaimer<\/p>\n
<\/p>\n
More here: <\/p>\n
Health care has 'more room to run' after hitting record highs, ETF analyst says - CNBC<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Health-care stocks are hot. The group hit record highs on Monday after a potential coronavirus vaccine developed by Oxford University and AstraZeneca showed promising responses in an early trial, creating a lift in the relatively broad health-care space. In addition to the Health Care Select Sector SPDR Fund (XLV) reaching records, the market-cap-weightediShares Nasdaq Biotechnology ETF(IBB) and the equal-weighted SPDR S&P Biotech ETF (XBI) hit historic highs on Monday. Continue reading