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Healthcare ETF (XLV) Hits New 52-Week High

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For investors seeking momentum, S&P 500 Healthcare Sector SPDR (XLV - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 28.7% from its 52-week low of $109.93 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

XLV in Focus

The underlying Health Care Select Sector Index includes companies from the following industries: pharmaceuticals; health care providers & services; health care equipment & supplies; biotechnology; life sciences tools & services; and health care technology. The ETF charges 12 basis points in fees (see: all Health Care ETFs here).

Why the Move?

As long as the virus threat is around, extra focus on healthcare and biotech stocks is warranted and thus the fund gained. Plus, Healthcare, which generally outperforms during periods of low growth and high uncertainty, garnered investors’ interest due its non-cyclical nature.

More Gains Ahead?

Currently, XLV has a Zacks ETF Rank #1 (Strong Buy). The fund has a positive weighted alpha of 25.15 (per barchart.com), which gives cues of further rally.


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