Health Care ETFs Experience Calm before the Storm
Since health care became a pinnacle talking point in Washington, health care ETFs have been relatively flat. Investors have exhibited indecision regarding which companies may make a good investment should Congress pass its $1 trillion health care insurance reform bill.
The new bill could bring as many as 43 million more Americans to hospital waiting rooms, small family doctors and to the operating table, increasing profits for many of the largest health care companies, including pharmaceutical makers. One ETF shines out among many as an excellent way to buy the whole health care industry, as well as profit on any new legislation.
NASDAQ points to the Health Care Select Sector SPDR (XLV: Quote, Profile, Advanced Chart, News), which manages $2.3 billion and keeps costs low at just .21% annually. The exchange-traded fund invests in all aspects of the health care industry, excluding insurance, by holding investments in 54 companies in health care equipment and supplies, providers and services, biotech companies and pharmaceuticals.
President Obama removed the ban on federally funded stem cell research this week, and investors rejoiced by multiplying investments in the bio-tech industry. The industry hopes that further federal funding at the academic level, as well as increased awareness of stem cell research, will help open up a field that stagnated for eight years under the ban.
After significantly outperforming the broad market in 2008, biotechnology is under the microscope of many analysts to project which direction the industry will go in 2009. In just the first week of the year, biotech stocks are already showing signs of optimism. A biotechnology ETF that captures the industry’s recent strength is iShares Nasdaq Biotechnology ETF (IBB: 
As part of the NYSE Arca’s acquisition of the American Stock Exchange (AMEX), First Trust has successfully relocated 29 of its ETFs from the AMEX to the NYSE Arca. 
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