Friday, June 14, 2013

3 Impressive Biotech ETFs Crushing the Market

While the markets continue to do quite well, many investors have seen some sector rotation starting to take place. The move as of late has been out of lower risk, high dividend, sectors like utilities and real estate investment trusts, and into higher risk, growth sectors like financials, consumer discretionary firms, and health care.
This rotation is pretty evident when investors consider a six month chart of some of the major sector ETFs, and the dislocation between the higher risk and lower risk ones.

Pretty much starting in early May, sectors like financials (XLF) and health care (XLV - ETF report) took a leadership role, and left ones like utilities (XLU) and consumer staples (XLP) in the dust.
Looking Ahead
Given this reversal, it may be worthwhile for investors to go with the hot hand and stay in growth sectors. While a broad play could be an interesting way to go, investors may want to delve a bit deeper, and go with a surging segment of the health care world instead; biotechnology.(more)

Please share this article

No comments:

Post a Comment