iShares Global Healthcare ETF (ARCA: IXJ)

Dernières nouvelles pour iShares Global Healthcare ETF (ARCA:IXJ)

iShares Global Healthcare ETF

Healthcare

The Fund seeks to track the investment results of the S&P Global 1200 Health Care Index (the Underlying Index), which measures the performance of companies that S&P Dow Jones Indices LLC (the Index Provider or SPDJI), a subsidiary of S&P Global, Inc., deems to be a part of the healthcare sector of the economy and that SPDJI believes are important to global markets. The Underlying Index is a subset of the S&P Global 1200, which is designed to measure the performance of large-capitalization stocks from major global markets, as determined by SPDJI. As of March 31, 2024, a significant portion of the Underlying Index is represented by securities of companies in the healthcare industry or sector. The components of the Underlying Index are likely to change over time. As of March 31, 2024, the Underlying Index was composed of securities of companies in the following countries as Australia, Belgium, Brazil, Denmark, France, Germany, Japan, the Netherlands, South Korea, Spain, Sweden, Switzerland, the United Kingdom (the U.K.) and the U.S.

Eli Lilly & Co.

Unitedhealth Group Inc

Novo Nordisk A/S B Common Stock Dkk.1

Johnson & Johnson

Abbvie Inc.

Merck & Company Inc.

AstraZeneca PLC

Thermo Fisher Scientific Inc

Roche Holding

Abbott Laboratories

Robert F. Kennedy Jr.&#8216;s appointment as U.S. Secretary of Health and Human Services has sparked concerns over funding for the National Institutes of Health. Analysts warn that potential cuts to this funding could lead to increased &#8220;uncertainty&#8221; in the healthcare sector, potentially impacting healthcare stocks.
What Happened: The NIH grants are &#8220;very important&#8221; sources of funding for a lot of labs out there, said Kyle Mikson, managing director and senior research analyst in <a href="https://www.buzzsprout.com/2414939/episodes/16662667">conversation</a> with Michael Graham, senior managing director and head of U.S. equity research internet analyst at Canaccord Genuity. 
Talking about RFK Jr.&#8217;s appointment Mikson said &#8220;He&#8217;s got some opposition to vaccines, to infectious disease research.&#8221; Highlighting the possible funding cuts along with caps on grants, Mikson added, "Things like that are causing uncertainty, causing, you know, stocks to decline."
Kennedy, known for his vaccine skepticism and conspiracy theories, has extended his influence globally, undermining health initiatives like vaccination and AIDS prevention, The New York Times <a href="https://www.nytimes.com/2024/11/30/world/africa/rfk-jr-kennedy-international-work-public-health-policies.html">reports</a>. Through his nonprofit, Children's Health Defense, Kennedy has <a href="https://www.benzinga.com/markets/equities/24/11/42254495/trumps-hhs-pick-rfk-jr-has-a-long-history-of-challenging-global-health-policies">disrupted public health efforts</a> in countries like Uganda and South Africa. He has also questioned the World Health Organization and its programs for fueling global health conspiracies.
The Donald Trump-led <a href="https://www.benzinga.com/general/health-care/25/01/43194764/trump-administration-halts-all-communications-from-the-centers-for-disease-control-as-bird-flu-spreads">administration</a> is trying to set caps at around 15% and 10% for some labs which is delayed due to broad opposition by many states. While this is detrimental to some NIH-funded labs, others have stated that they can function without indirect cost funding or support.
While, NIH awarded about $2.5 billion in grants in the first six weeks of 2024, this year, that number has plummeted to $1.4 billion.
See Also: <a href="https://www.benzinga.com/25/02/43906366/warren-buffetts-berkshire-boosts-bets-on-five-japanese-companies-admiration-has-consistently-grown-says-oracle-of-omaha-in-letter-to-shareholders">Warren Buffett&#8217;s Berkshire Boosts Bets On 5 Japanese Companies: Oracle Of Omaha Says Admiration &#8216;Has Consistently Grown&#8217;</a>
Why It Matters: While there isn't going to be a blanket impact of these caps on all healthcare firms, Mikson explains that companies that are academically focused are more likely to be impacted as compared to the ones with a mixed revenue base.
However, when considering investment opportunities, especially for growth-oriented companies with research-driven businesses, the impact is particularly important, Mikson explained.
According to the <a href="https://www.benzinga.com/markets/equities/25/02/43878703/institutional-investors-load-up-on-technology-and-financial-stocks-in-q4-while-reducing-positions-in-healthcare-sector-amid-political-uncertainty">13F SEC filings</a> during the fourth quarter, healthcare sectors experienced a sharp decline in investments, with allocations dropping by 1.4%. Adam Turnquist, the chief technical strategist at LPL Financial said that "The nomination of the so-called anti-vaccine Health Secretary, Robert F. Kennedy, Jr., and the potential for reduced Affordable Care Act subsidies," was also a potential trigger.
Kennedy&#8217;s appointment comes as healthcare costs rise and <a href="https://www.benzinga.com/general/health-care/25/02/43549057/deadly-bird-flu-strain-hits-dairy-cows-could-make-covid-seem-like-a-walk-in-the-park-expert-says">bird flu spreads</a>, raising pandemic concerns. A longtime vaccine skeptic, his stance could impact pharmaceutical companies like Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) and Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>), especially as he has questioned the safety and efficacy of bird flu vaccines.
Here is a list of healthcare sector-linked exchange-traded funds, that investors could consider while trying to gain exposure to the sector.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>6.41%</td>
<td>-0.46%</td>
</tr>
<tr>
<td>Vanguard Health Care ETF VHT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>)</td>
<td>5.79%</td>
<td>-0.19%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NASDAQ">IBB</a>)</td>
<td>4.51%</td>
<td>-0.18%</td>
</tr>
<tr>
<td>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>)</td>
<td>0.19%</td>
<td>-5.79%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>10.36%</td>
<td>12.22%</td>
</tr>
<tr>
<td>iShares Global Healthcare ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXJ#NYSE">IXJ</a>)</td>
<td>6.67%</td>
<td>-0.57%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYH#NYSE">IYH</a>)</td>
<td>5.52%</td>
<td>-0.26%</td>
</tr>
<tr>
<td>Fidelity MSCI Health Care Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHLC#NYSE">FHLC</a>)</td>
<td>5.90%</td>
<td>-0.27%</td>
</tr>
<tr>
<td>ARK Genomic Revolution ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKG#BATS">ARKG</a>)</td>
<td>10.14%</td>
<td>-14.26%</td>
</tr>
<tr>
<td>First Trust NYSE Arca Biotechnology Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FBT#NYSE">FBT</a>)</td>
<td>6.72%</td>
<td>16.97%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/25/02/43878703/institutional-investors-load-up-on-technology-and-financial-stocks-in-q4-while-reducing-positions-in-healthcare-sector-amid-political-uncertainty">Institutional Investors Load Up On Technology And Financial Stocks In Q4 While Reducing Positions In Healthcare Sector Amid Political Uncertainty</a></li>
</ul>
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Analyst Color

Equities

Government

Market Summary

News

Regulations

Markets

ETFs

General

ARKG

First Trust NYSE Arca Biotechnology Index Fund

FHLC

iShares Dow Jones US Medical Devices Index Fund

iShares Trust S&P Global Healthcare Sector Index Fund

iShares Trust Dow Jones US Healthcare Sector Index Fund

MRNA

NIH Funding Cuts To Spook Healthcare Stocks? RFK Jr's Confirmation At HHS Sparks Concerns Over Research Dollars, 'Causing Uncertainty,' Says Analyst

President Donald Trump signed an executive order on January 20, 2025, initiating the United States&#8217; withdrawal from the World Health Organization (WHO).
The <a target="_blank" href="https://www.whitehouse.gov/presidential-actions/2025/01/withdrawing-the-united-states-from-the-worldhealth-organization/" rel="noreferrer noopener">move</a> marks a continuance of Trump&#8217;s first-term efforts to end WHO membership, citing concerns about the organization&#8217;s governance and financial practices. Former President Joe Biden reversed Trump&#8217;s initial withdrawal attempt upon taking office in 2021.
In his order, Trump pointed to the WHO&#8217;s handling of the COVID-19 pandemic, its alleged susceptibility to political influence, and a lack of meaningful reforms as primary reasons for the decision.
The U.S. has criticized the organization&#8217;s funding structure, emphasizing that American contributions far outweigh those of other nations. For example, China, with a population over three times that of the U.S., contributes approximately 90% less to the WHO&#8217;s budget, the executive order says.
The executive order formally <a target="_blank" href="https://www.nytimes.com/2025/01/20/us/politics/trump-world-health-organization.html" rel="noreferrer noopener">revokes</a> the 2021 Presidential Letter that retracted the U.S.&#8217;s initial notification to withdraw. Trump&#8217;s administration argued that WHO has failed to demonstrate independence from undue political influence and continues to impose unfair financial demands on the U.S.
The WHO said it <a target="_blank" href="https://www.who.int/news/item/21-01-2025-who-comments-on-united-states--announcement-of-intent-to-withdraw" rel="noreferrer noopener">regretted</a> the decision, emphasizing the historic partnership between the organization and the United States. As a founding member since 1948, the U.S. has played a significant role in shaping the WHO&#8217;s initiatives and policies.
The collaboration has led to major public health achievements, including the eradication of smallpox and the near-eradication of polio. WHO highlighted that American institutions have contributed to and benefited from the partnership over the past seven decades.
The U.S. decides to withdraw when global health challenges require coordinated efforts. While the WHO faces criticism, the organization argues that U.S. involvement has been critical to protecting Americans and addressing international health crises.
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Health Care

BMED

Harvard Apparatus Regenerative Technology

HART

iShares Dow Jones US Health Care Provides Index Fund

PINK

World Health Organization Responds to Trump's Order, Reminds Decades of Successful Health Achievements

Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Health Care Select Sector SPDR ETF (ARCA:XLV), a passively managed exchange traded fund launched on 12/16/1998.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
<h2>Index Details</h2>
The fund is sponsored by State Street Global Advisors. It has amassed assets over $40.97 billion, making it the largest ETF attempting to match the performance of the Healthcare - Broad segment of the equity market. XLV seeks to match the performance of the Health Care Select Sector Index before fees and expenses.
The Health Care Select Sector Index includes companies from the following industries: pharmaceuticals; health care providers &amp; services; health care equipment &amp; supplies; biotechnology; life sciences tools &amp; services; and health care technology.
<h2>Costs</h2>
When considering an ETF&#39;s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly &amp;&nbsp;Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) accounts for about 13.14% of total assets, followed by Unitedhealth Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>).
The top 10 holdings account for about 55.87% of total assets under management.
<h2>Performance and Risk</h2>
So far this year, XLV has added about 10.92%, and is up roughly 12.74% in the last one year (as of 07/31/2024). During this past 52-week period, the fund has traded between $123.14 and $150.54.
The ETF has a beta of 0.67 and standard deviation of 14.18% for the trailing three-year period, making it a medium risk choice in the space. With about 66 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Health Care Select Sector SPDR ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XLV is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Healthcare ETF (ARCA:IXJ) tracks S&amp;P Global 1200 Healthcare Sector Index and the Vanguard Health Care ETF (ARCA:VHT) tracks MSCI US Investable Market Health Care 25/50 Index. IShares Global Healthcare ETF has $4.14 billion in assets, Vanguard Health Care ETF has $18.31 billion. IXJ has an expense ratio of 0.42% and VHT charges 0.10%.
<a href="https://www.zacks.com/stock/news/2312590/should-you-invest-in-the-health-care-select-sector-spdr-etf-xlv?cid=CS-BENZ-FT-sector_etf-2312590">To read this article on Zacks.com click here.</a>

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Analyst Ratings

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Should You Invest in the Health Care Select Sector SPDR ETF?

Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Vanguard Health Care ETF (ARCA:VHT), a passively managed exchange traded fund launched on 01/26/2004.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $17.89 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. VHT seeks to match the performance of the MSCI US Investable Market Health Care 25/50 Index before fees and expenses.
The MSCI US Investable Market Health Care 25/50 Index is made up of stocks of U.S. companies within the health care sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.30%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund&#39;s holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Eli Lilly &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) accounts for about 9.95% of total assets, followed by Unitedhealth Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>).
The top 10 holdings account for about 48.87% of total assets under management.
Performance and Risk
The ETF return is roughly 6.87% and is up about 11.87% so far this year and in the past one year (as of 05/20/2024), respectively. VHT has traded between $223.10 and $270.54 during this last 52-week period.
The ETF has a beta of 0.71 and standard deviation of 14.69% for the trailing three-year period, making it a medium risk choice in the space. With about 411 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Health Care ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VHT is an outstanding option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Healthcare ETF (ARCA:IXJ) tracks S&amp;P Global 1200 Healthcare Sector Index and the Health Care Select Sector SPDR ETF (ARCA:XLV) tracks Health Care Select Sector Index. IShares Global Healthcare ETF has $4.04 billion in assets, Health Care Select Sector SPDR ETF has $39.48 billion. IXJ has an expense ratio of 0.42% and XLV charges 0.09%.
<a href="https://www.zacks.com/stock/news/2275801/should-you-invest-in-the-vanguard-health-care-etf-vht?cid=CS-BENZ-FT-sector_etf-2275801">To read this article on Zacks.com click here.</a>

Sector ETFs

Should You Invest in the Vanguard Health Care ETF?

According to the Global Data report, the pharma sector in Q3 2023 witnessed deals worth $28 billion, down 28% from the $54 billion recorded in Q2 2023.&nbsp;
Deal volume fell 9% from 242 deals in Q2 2023 to 221 M&amp;A deals in&nbsp;<a class="editor-rtfLink" href="https://www.globaldata.com/store/report/healthcare-industry-m-and-a-deals-by-theme-quarterly-analysis/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Q3</a>&nbsp;2023.
PricewaterhouseCoopers&nbsp;<a class="editor-rtfLink" href="https://www.pwc.com/us/en/industries/health-industries/library/pharma-life-sciences-deals-outlook.html" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">wrote</a>&nbsp;in its Pharmaceutical and Life Sciences: U.S. Deals 2024 Outlook. &quot;As regulators&#39; perspectives on key deal factors become better understood, there may be a return of larger deals, along with continued interest in the $5 billion to $15 billion deals to fill targeted strategic gaps.&quot;
&quot;Despite some stabilization in the macroeconomic environment and the potential for a soft landing in sight, continued geopolitical and regulatory uncertainty seems a given in 2024,&quot; PWC added in its report.
The pharmaceutical and life sciences sector experienced a notably robust year in 2023, nearing pre-pandemic levels in both M&amp;A deal value and volume, the PWC report added.&nbsp;
Anticipations for 2024 suggest continuing this trend, projecting comparable activity levels within the range of $225 billion to $275 billion across all subsectors.
Notable Deals in 2023
<ul>
<li>Pfizer Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) acquired&nbsp;Seagen Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sgen#NASDAQ">SGEN</a>)<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/12/36198526/pfizer-clears-required-regulatory-hurdles-to-complete-43b-seagen-acquisition" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">&nbsp;for $43 billion.</a></li>
<li>Bristol Myers Squibb &amp; Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/bmy#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BMY</a>) agreed to acquire&nbsp;Karuna Therapeutics Inc&nbsp;KRTX for $330.00 per share in cash, for a total equity value of $14.0 billion, or $12.7 billion net of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/12/36360205/bristol-myers-squibb-scoops-up-schizophrenia-player-karuna-therapeutics-in-massive-14b-deal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">estimated cash acquired</a>.&nbsp;</li>
<li>Merck &amp; Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) acquired&nbsp;Prometheus Biosciences&nbsp;for $200.00 per share in cash for a total equity&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/08/33491400/merck-swings-into-q2-loss-on-prometheus-biosciences-acquisition-charge-but-raises-fy23-revenue-ou" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">value of ~$10.8 billion</a>.</li>
<li>AbbVie Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abbv#NYSE">ABBV</a>) to acquire&nbsp;ImmunoGen Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/imgn#NASDAQ">IMGN</a>) and its flagship cancer therapy Elahere, for $31.26 per share in cash. The transaction values ImmunoGen at a total equity value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/11/36020779/immunogens-flagship-cancer-therapy-draws-abbvies-attention-with-10-1b-deal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $10.1 billion</a>.&nbsp;</li>
<li>AbbVie Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abbv#NYSE">ABBV</a>) will acquire psychiatric and neurological disorders player&nbsp;Cerevel Therapeutics Holdings, Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/cere#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">CERE</a>) for $45 per share in cash with a total equity value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/12/36138161/why-cerevel-therapeutics-stock-is-higher" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $8.7 billion</a>.</li>
<li>Biogen Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/biib#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BIIB</a>) agreed to acquire&nbsp;Reata Pharmaceuticals Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/reta#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">RETA</a>) for $172.50 per share in cash, reflecting an enterprise value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/07/33440534/biogen-bolsters-rare-disease-portfolio-agrees-to-buy-reata-pharmaceuticals-with-enterprise-value-" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $7.3 billion</a>.</li>
<li>Bristol Myers Squibb &amp; Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/bmy#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BMY</a>) agreed to purchase&nbsp;Mirati&nbsp;Therapeutics Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mrtx#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MRTX</a>) at $58.00 per share in cash, amounting to an overall equity valuation of $4.8 billion, with an additional Contingent Value Right at $12.00 per share in cash, offering an extra&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/10/35141493/bristol-myers-squibb-strengthens-oncology-portfolio-with-mirati-therapeutics-5b-deal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">$1.0 billion in value opportunity</a>.</li>
<li>Japanese healthcare company&nbsp;Astellas Pharma Inc&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/alpmy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ALPMY</a>) has agreed to buy&nbsp;Iveric Bio Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/isee#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ISEE</a>) for $40.00 per share in cash for a total equity value of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/05/32112605/astellas-pharma-acquires-iveric-bio-for-5-9b-to-focus-on-blindness-regeneration" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approximately $5.9 billion</a>.</li>
<li>Most recently,&nbsp;Bristol Myers Squibb &amp; Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/bmy#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BMY</a>) has agreed to acquire&nbsp;RayzeBio Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ryzb#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">RYZB</a>) for $62.50 per share in cash, for a total equity value of approximately $4.1 billion, or $3.6 billion net of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/12/b36382478/bristol-myers-squibb-adds-premier-radiopharmaceutical-platform-with-acquisition-of-rayzebio" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">estimated cash acquired</a>.</li>
<li>Image by Steve Buissinne from Pixabay</li>
</ul>

Biotech

ABBV

ALPMY

BIIB

CERE

HTEC

IMGN

ISEE

MDEV

MRTX

RETA

RYZB

SGEN

Upward Trajectory For Biotech/Pharma M&A: Sector Trends Towards Pre-Pandemic Levels, Forecasts Positive For 2024

<ul>
<li>Developing countries have been pushing for a patent waiver extension for COVID-19, which many developed countries argue could discourage pharma companies from responding rapidly to future global health crises.</li>
<li>The deadline for a decision has been December 17, but there has been an unresolved stand-off on the issue at the WTO.</li>
<li>The U.S. has backed delaying the decision to waive patent protection for COVID-19 treatments and tests.</li>
<li>In June, World Trade Organization members agreed on a partial waiver of intellectual property rights for COVID-19 vaccines, with consideration of an&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/22/06/27603513/covid-19-vaccine-patent-waiver-expected-soon-says-wto-head-reuters" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">extension within six months</a>.</li>
<li>&quot;Real questions remain on a range of issues, and the additional time, coupled with information from the USITC, will help the world make a more informed decision,&quot; U.S. Trade Representative Katharine Tai said in a statement,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/markets/us-backs-delaying-wto-decision-covid-therapies-tests-2022-12-06/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters</a>&nbsp;reported.</li>
<li>&quot;The U.S. has had more than two years to meaningfully engage in WTO negotiations over access to lifesaving tests and treatments. Kicking the issue further into the long grass, just as the negotiating deadline approaches, is pathetic,&quot; policy co-leader Mohga Kamal-Yanni said.</li>
<li>Last year, G20 supported the &quot;voluntary licensing&quot; of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/21/05/21180142/g20-countries-water-down-us-push-for-covid-19-ip-waiver-reuters" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">COVID-19 vaccine patents</a>.</li>
<li>Photo by Gerd Altmann from Pixabay</li>
</ul>

BNTX

NVAX

US Supports Delay On COVID Patent Waiver Extension Decision

The World Health Organization said that it&#39;s&nbsp;<a class="editor-rtfLink" href="https://www.who.int/news/item/07-12-2021-who-recommends-against-the-use-of-convalescent-plasma-to-treat-covid-19" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">not recommending the use of convalescent plasma</a>&nbsp;as a treatment for COVID-19 for mild or severe cases. The treatment uses blood from those who have recovered from COVID-19 since they have antibodies from natural infection. Antibodies and plasma are separated from blood cells and introduced into the patient&#39;s body.
<ul>
<li>&quot;Despite its initial promise, current evidence shows that it does not improve survival nor reduce the need for mechanical ventilation, and it is costly and time-consuming to administer,&quot; WHO noted.</li>
<li>Related Link:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/21/08/22572142/does-convalescent-plasma-therapy-help-in-covid-19-recovery-nih-study-says-it-does-not" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Does Convalescent Plasma Therapy Help In COVID-19 Recovery? NIH Study Says &#39;It Does Not&#39;</a></li>
<li>The organization said that there was sufficient uncertainty in patients with severe and critical illnesses to warrant the continuation of randomized controlled trials.&nbsp;</li>
<li>The recommendation was based on findings from 16 trials involving 16,236 patients with non-severe, severe, and critical infections.&nbsp;</li>
<li>WHO also listed&nbsp;<a class="editor-rtfLink" href="https://apps.who.int/iris/bitstream/handle/10665/350177/WHO-2019-nCoV-therapeutics-2021.4-eng.pdf" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">several logistical concerns</a>&nbsp;surrounding this line of treatment.&nbsp;</li>
<li>The process of identifying and testing potential donors, collecting, storing, and administering plasma therapy is not entirely practical and causes feasibility issues, according to the agency.</li>
<li>Also See:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/21/03/19977949/covid-19-convalescent-plasma-study-shows-no-benefit-us-nih-stops-trial" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">COVID-19 Convalescent Plasma Study Shows No Benefit, US NIH Stops Trial</a>.</li>
<li>Photo by AhmadArdity via Pixaby</li>
</ul>

Education

Why WHO Did Not Recommend Convalescent Plasma Therapy For COVID-19

The&nbsp;<a class="editor-rtfLink" href="https://www.fda.gov/media/154293/download?utm_medium=email&amp;utm_source=govdelivery" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">FDA continues to face a backlog</a>&nbsp;of drug manufacturing facility inspections. A total of 52 new drug (but no biologics) applications remain delayed due to the backlog from the pandemic. The agency has maintained that it won&rsquo;t issue a Complete Response Letter (CRL) for a delayed inspection.
<ul>
<li>The number of delayed applications is rising as FDA said in May that 48 new drug applications had been delayed as it could not conduct pre-approval, pre-market, or pre-license inspections as of last March.</li>
<li>The agency&rsquo;s inability to work overseas has also hurt its output well into 2021.</li>
<li>Just 37 foreign drug inspections have been conducted between April and September 2021. Before the pandemic, the FDA typically conducted about 1,000 foreign drug inspections per year.</li>
<li>The agency has sought to shift to more remote facilities assessments, but the legal definition of an inspection is conducted on-site.</li>
<li>In early 2021, the FDA estimated that over 15,000 surveillance inspections throughout the US had been postponed thanks to the pandemic.&nbsp;</li>
<li>The agency predicted completing 14% of those inspections, including 26% of the remaining human and animal medical domestic surveillance inspections.&nbsp;</li>
<li>Related Link:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/21/05/21041564/fda-outlines-plan-for-restarting-facility-inspections-halted-due-to-pandemic" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">FDA Outlines Plan For Restarting Facility Inspections Halted Due To Pandemic</a>.</li>
<li>The agency exceeded that number two-fold. It reported a completion rating of 134%.</li>
</ul>

New Drug Applications Pile Up With FDA As Pandemic Still Sore Spot For Delayed Inspections

<ul>
<li>On Sunday, the U.K. government&nbsp;<a class="editor-rtfLink" href="https://www.bbc.com/news/uk-58293249" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">rolled out a new nationwide antibody surveillance program</a>, in which anyone over 18 years can opt-in when having a PCR test from Tuesday.&nbsp;</li>
<li>Of those who test positive, up to 8,000 will be sent two home antibody tests. The U.K. Health Security Agency will offer finger-prick tests to help improve the understanding of immunity against COVID-19 from vaccination and infection.&nbsp;</li>
<li>The first test will determine the level of antibodies a person had before their current infection. The second test should be taken 28 days after testing positive for COVID-19 and will measure antibodies generated in response to the infection.</li>
<li>Related:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/21/08/22592570/uk-approves-regeneron-roches-covid-19-antibody-cocktail" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">UK Approves Regeneron - Roche&#39;s COVID-19 Antibody Cocktail</a>.</li>
<li>By comparing the two antibody test results, the U.K. Health Security Agency says it will see how well vaccinated individuals boost their immunity when infected and how this might vary with different variants.</li>
</ul>

UK Rolls Out COVID-19 Antibody Tests For All: What You Need To Know

On <a href="https://www.cnbc.com/video/2020/07/08/final-trades-disney-seattle-genetics-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Jim Lebenthal revealed that he is bullish on Walt Disney Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>). He said that Disney is still on track for&nbsp;reopening Disney World on July 11, and although that might change, there is more reopening going on.
Lebenthal added that the stock is still trading where it was two&nbsp;months ago and the current price is not reflecting good news.
Joe Terranova is a buyer of Seattle Genetics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sgen#NASDAQ">SGEN</a>).
Liz Young wants to buy iShares S&amp;P Global Healthcare Sector (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ixj#NYSE">IXJ</a>). She said that there is more demand and innovation to come.
Stephen Weiss owns puts in VIX.

Media

'Fast Money Halftime Report' Picks For July 8: DIsney, Seattle Genetics And More

NEW YORK--(BUSINESS WIRE)-- BlackRock (NYSE:<a class="ticker" href="/stock/BLK#NYSE">BLK</a>) announces that the iShares Board of Trustees and Board of Directors have authorized a share split for iShares Global 100 ETF (IOO), iShares Global Healthcare ETF (IXJ), iShares Global Consumer Staples ETF (KXI) and iShares MSCI EM ESG Optimized ETF (ESGE). The Boards have approved a 2-for-1 split for these funds for shareholders of record as of the close of business on April 27, 2018, payable after the close of trading on May 1, 2018. The 2-for-1 split will lower the share price and increase the number of outstanding shares. The total value of shares outstanding is not affected by the split. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund Name&nbsp;&nbsp;&nbsp;Ticker&nbsp;&nbsp;&nbsp;Inception Date&nbsp;&nbsp;&nbsp;NAV/Share (as of 03/27/18)&nbsp;&nbsp;&nbsp;Proposed Forward Split Ratio iShares Global 100 ETF&nbsp;&nbsp;&nbsp;IOO&nbsp;&nbsp;&nbsp;December 5, 2000&nbsp;&nbsp;&nbsp;$90.60&nbsp;&nbsp;&nbsp;2 for 1 iShares Global Healthcare ETF&nbsp;&nbsp;&nbsp;IXJ&nbsp;&nbsp;&nbsp;November 13, 2001&nbsp;&nbsp;&nbsp;$110.20&nbsp;&nbsp;&nbsp;2 for 1 iShares Global Consumer Staples ETF&nbsp;&nbsp;&nbsp;KXI&nbsp;&nbsp;&nbsp;September 12, 2006&nbsp;&nbsp;&nbsp;$98.35&nbsp;&nbsp;&nbsp;2 for 1 iShares MSCI EM ESG Optimized ETF&nbsp;&nbsp;&nbsp;ESGE&nbsp;&nbsp;&nbsp;June 28, 2016&nbsp;&nbsp;&nbsp;$75.51&nbsp;&nbsp;&nbsp;2 for 1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Stock Split

ESGE

iShares S&P Globalnsumer Staples Sector Index Fund

BlackRock Announces 2-for-1 Share Splits for Four iShares ETFs (IOO, IXJ, KXI, ESGE)

In 1928, Congress passed a joint resolution establishing Child Health Day, the express <a href="https://www.law.cornell.edu/uscode/text/36/105">purpose </a>of which was to raise awareness &ldquo;of the fundamental necessity of a year-round program to protect and develop the health of the children of the United States.&rdquo;
Monday, on the nation&rsquo;s 88th Child Health Day, Congress is reflecting on its failure to renew the <a href="https://www.healthcare.gov/medicaid-chip/childrens-health-insurance-program/">Children&rsquo;s Health Insurance Program</a>, which technically expired Friday amid House attempts to repeal the Affordable Care Act.
For the last 20 years, CHIP has provided comprehensive coverage to youth whose parents earn too much to qualify for Medicaid. The law is credited with decreasing the percentage of children without insurance from 14 percent in 1997 to 4.5 percent in 2015.
Its continuation is now uncertain.
Related Link: <a href="https://www.benzinga.com/news/17/09/10091370/healthcare-stocks-spike-after-mccain-announces-no-vote-on-graham-cassidy-proposa">Health Care Stocks Spike After McCain Announces 'No' Vote On Graham-Cassidy Proposal</a>
<h3>What&rsquo;s At Stake</h3>
The House Energy and Commerce Committee will <a href="https://www.axios.com/house-to-move-forward-on-chip-next-week-2490584583.html">work on a bill</a> this week to reauthorize spending, projected at $17.4 billion for 2018, but the immediate lapse could significantly impact some of the 9 million children enrolled in the program.
Although most states can extend aid with rollovers from their two-year allotments, Minnesota <a href="https://www.vox.com/policy-and-politics/2017/9/27/16373494/chip-funding-reauthorization-congress">had been on course</a> to expend its entire share Sept. 30 and was exploring &ldquo;extraordinary measures&rdquo; to continue coverage, including using $10 million from its general fund.
Some states are expected to exhaust their resources by the end of the year. Thirty-one will run out by March, according to the <a href="https://www.macpac.gov/wp-content/uploads/2017/03/Federal-CHIP-Funding_When-Will-States-Exhaust-Allotments.pdf">Medicaid and CHIP Payment and Access Commission</a>.
If Congress does not renew federal funding, states will be forced to decide whether to terminate their CHIP segments or proceed with significantly reduced budgets. Children in states that shut down the program will either shift to employer-sponsored or subsidized exchange coverage &mdash; or become uninsured.
Physicians <a href="https://www.washingtonpost.com/opinions/will-congress-force-me-to-deny-health-care-to-children-once-again/2017/08/07/734ff7fe-792a-11e7-9eac-d56bd5568db8_story.html?tid=a_inl&amp;utm_term=.c43f63b3461b">may be forced</a> to reject those uncovered patients and deny immunizations, sick visits and prescriptions, which <a href="https://www.washingtonpost.com/news/answer-sheet/wp/2017/10/01/9-million-kids-get-health-insurance-under-chip-congress-just-let-it-expire/?utm_term=.f338ac745779">may ultimately result</a> in public health crises.
At the time of publication, the Health Care SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) was trading at $82.41.
Related Link: <a href="https://www.benzinga.com/news/17/09/10122440/hhs-secretary-tom-price-heads-for-departure-gate-after-private-plane-scandal">HHS Secretary Tom Price Heads For Departure Gate After Private Plane Scandal</a>

Politics

Legal

FNCL

iShares Trust S&P Global Financials Sector Index Fund

iShares Dow Jones US Financial Sector Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

Rydex ETF Trust Rydex S&P Equal Weight Financial ETF

Rydex ETF Trust Rydex S&P Equal Weight Health ETF

9 Million American Children Lost Funding For Their Insurance

Radio frequencies frequently emitted by cellphones can cause cancer, according to partial findings of a government study on rats, reported the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a>.
The National Toxicology Program (NTP) has carried out extensive toxicology and carcinogenesis <a href="http://biorxiv.org/content/early/2016/05/26/055699.full.pdf">studies of radiofrequency radiation (RFR)</a> in rats over multiple years. The studies involved observing the effects of frequencies and modulations found in the U.S. telecommunications industry on the rodents, paying particular attention to the potential of cancer-cell developments.
<h3>The Study</h3>
The peer-reviewed study found "the occurrences of two tumor types in male Harlan Sprague Dawley rats exposed to RFR (radiofrequency radiation), malignant gliomas in the brain and schwannomas of the heart," according to <a href="http://www.nbcnews.com/health/health-news/possible-cellphone-link-cancer-rat-study-launches-new-debate-n581621">the research team</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/16/05/8040684/astrazeneca-remains-committed-to-development-of-zs-9-despite-letter-from-fda">AstraZeneca Remains Committed To Development of ZS-9 Despite Letter From FDA</a></bzrelatedlink>
"Given the widespread global usage of mobile communications among users of all ages, even a very small increase in the incidence of disease resulting from exposure to [radio-frequency radiation] could have broad implications for public health," the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a> quoted a report of partial findings from the study.
Under these studies, rats and mice were exposed to radio-frequency "with two signal modulations [Code Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM)] at two frequencies (900 MHz for rats and 1900 MHz for mice)," the <a href="http://biorxiv.org/content/biorxiv/early/2016/05/26/055699.full.pdf">NTP</a> wrote.
The study also found that "the tumors in the brain and heart observed at low incidence in male rats exposed to GSM and CDMA-modulated cell phone RFR in this study are of a type similar to tumors observed in some epidemiology studies of cell phone use."
"All RF exposures were conducted over a period of approximately 18 hours using a continuous cycle of 10 minutes on (exposed) and 10 minutes off (not exposed), for a total daily exposure time of approximately 9 hours a day, 7 days/week," according to the study.
<h3>What Does It All Mean?</h3>
"Where people were saying there's no risk, I think this ends that kind of statement," the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a> report said, quoting Ron Melnick, who ran the NTP project until his retirement in 2009.
The Journal said, "It's not clear how the results may impact the government's cellphone safety recommendations."
"Scientific evidence always informs FCC rules on this matter," an FCC spokesman told the Journal. "We will continue to follow all recommendations from federal health and safety experts including whether the FCC should modify its current policies and RF exposure limits."

Wall Street Journal

iShares Dow Jones US Pharmaceuticals Index Fund

Government Study: Cellphone Radiation Linked To Cancer

Sector rotation is very common in the stock market, as investors allocate investment dollars from an underperforming sector to an outperforming sector, or a sector that has the potential to offer superior returns.
"There's always rotation going on in these markets from one sector to another," Joel Elconin, co-host of Benzinga's daily <a href="https://soundcloud.com/bztv/premarket-prep-for-may-4-may-the-markets-be-with-you?in=bztv/sets/daily-broadcasts">PreMarket Prep explained during Wednesday's edition.</a> "There are a lot of different places people can place their money."
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/04/7823223/a-bullish-call-on-a-favorite-healthcare-etf">A Bullish Call On A Favorite Healthcare ETF</a></bzrelatedlink>
JJ Kinahan, TDAmeritrade's chief strategist was a guest on the segment and offered his expert opinion on sector rotation. He said that it was perhaps a bit surprising to see a sector rotation outside of financials, despite the fact that there has been no interest rate increase.
He added that many major financial firms touted that the exposure of their retail and corporate clients "seem to be going really well" &ndash; a fact that makes a sector rotation outside of financials even more surprising.
Kinahan continued that the healthcare segment is showing some good earnings results and he expects investors to rotate back into the space. However, he cautioned that in an election year, the healthcare sector is the most vulnerable out of every sector to rule and law changes.
<h3>A Few Relevant ETFs</h3>
<ul>
<li>iShares Dow Jones US Healthcare (ETF) (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>) is currently down 4.4 percent year-to-date, but up 7.95 percent over the last three months.</li>
<li>Guggenheim S&amp;P 500 Equal Weight Healthcare ETF (NYSE: <a class="ticker" href="/stock/ryh#NYSE">RYH</a>) is down 4.08 percent year-to-date, but up 7.66 percent over the last three months.</li>
<li>iShares S&amp;P Global Healthcare Sect.(ETF) (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>) is down 4.31 percent year-to-date, but up 6.42 percent over the past three months.</li>
<li>ProShares Ultra Financials (ETF) (NYSE: <a class="ticker" href="/stock/uyg#NYSE">UYG</a>) is up 17.26 percent over the last three months and down 5.94 percent year-to-date.</li>
<li>Vanguard Financials ETF (NYSE: <a class="ticker" href="/stock/vfh#NYSE">VFH</a>) is up 10.62 percent over the past three months and down 2.17 percent year-to-date.</li>
<li>iShares Dow Jones US Financial (ETF) (NYSE: <a class="ticker" href="/stock/iyf#NYSE">IYF</a>) is up 10.28 percent over the three months, but down 2.29 percent year-to-date.</li>
<li>Guggenheim S&amp;P 500 Equal Weight Financials ETF (NYSE: <a class="ticker" href="/stock/ryf#NYSE">RYF</a>) is down 1.46 percent year-to-date, but up 9.77 percent over the three-month period.</li>
<li>Fidelity MSCI Financials Index ETF (NYSE: <a class="ticker" href="/stock/fncl#NYSE">FNCL</a>) is down 2.76 percent year-to-date, but up 9.82 percent over the past three months.</li>
</ul>

Exclusives

Interview

Are We Seeing A Sector Rotation Away From Financials And Into Healthcare?

Thanks to some assistance from major central banks (what else drives markets these days?), U.S. stocks rallied Friday with the S&amp;P 500 gaining 1.1 percent to cap a 2.4 percent weekly surge. That strong weekly performance was enough to lift the benchmark U.S. index back into positive territory on a year-to-date basis.

	&nbsp;

	On Friday, the People&rsquo;s Bank of China (PBoC) surprisingly pared interest rates, news that arrived a day after the European Central Bank (ECB) set the stage for more quantitative easing following its December meeting. Those headlines also set the stage for some marquee exchange traded funds to watch in the week ahead.

	&nbsp;

	The WisdomTree Europe Hedged Equity Fund (NYSE: <a class="ticker" href="/stock/hedj#NYSE">HEDJ</a>) <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5930492/year-to-date-etf-inflows-jump-to-a-record-145-billion">is among the predictable beneficiaries</a> of added ECB stimulus and this year&#39;s top asset-gathering ETF reflected as much during the just completed trading week. HEDJ gained nearly 2.2 percent on Friday on volume that was approximately 70 percent above the daily average to cap 5.2 percent weekly gain.&nbsp;

	&nbsp;

	HEDJ has a small-cap counterpart, the WisdomTree Europe Hedged SmallCap Equity Fund (NYSE: <a class="ticker" href="/stock/eusc#NYSE">EUSC</a>), that against the backdrop of more ECB stimulus, merits consideration as well. EUSC, one of this year&#39;s most successful new ETFs, rose 3.6 percent last week.

	&nbsp;

	Prior to the just finished week, currency hedged ETFs had been dithering in terms of performance, but had remained popular among investors. And issuers. Some new currency hedged ETFs debuted last week and they look well-timed as plays on the PBoC&#39;s continued efforts to weaken the yuan. On Wednesday, the CSOP MSCI China A International Hedged ETF (NYSE: CNHX) and the Deutsche X-trackers CSI 300 China A-Shares Hedged Equity (NYSE: ASHX) became <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5930498/csop-triples-its-u-s-etf-lineup-with-two-new-funds">the first China currency hedged ETFs</a> available to U.S. investors.&nbsp;

	&nbsp;

	Getting back to things stateside, third-quarter earnings season is in full bloom and that means several well-known ETFs will be tested in the days ahead. Next week, four of the top 10 holdings in the Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>), a quartet combining for over 28 percent of the largest energy ETF&#39;s weight, step into the earnings confessional. We&#39;re not calling it, but the potential is there for some upside surprises simply because the energy sector&#39;s third-quarter earnings bar has been set so low.

	&nbsp;

	Another ETF that will be tested by a spate of earnings reports in the week ahead is the iShares Global Healthcare ETF (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>). Though it is a global ETF, nearly two-thirds of IXJ&#39;s weight is allocated to U.S. stocks. At least 20 percent of the fund&#39;s weight, both U.S. and foreign companies, deliver earnings updates next week.

	&nbsp;

	As <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5940535/pipeline-problems-mlp-etfs-try-to-get-it-together">we alluded to Friday</a>, master limited partnerships (MLPs) and the ETFs that hold those once popular income-generating securities have fallen on hard times. That misfortune extended last week as seven of the 10 worst-performing non-leveraged ETFs were MLP funds, so this is an asset class that bears monitoring. When it is time to be long is another story altogether.

Long Ideas

Short Ideas

Specialty ETFs

Eurozone

New ETFs

Emerging Market ETFs

Commodities

Currency ETFs

EUSC

HEDJ

ETF Week Ahead Preview: Trying To Hold These Gains

With some help from the Federal Reserve, 2013 has been an excellent year for U.S., but some sectors have shined brighter than others.

	And while it has been a good year for U.S. equities, the backdrop has been far from sanguine. Tapering and rising interest rates may be a thing of the past, at least for now, but those are just two of the issues have had to contend with this year.

	Through it all, health care ETFs, broadly speaking, have proven resilient. "The sector, which represents about 13% of the S&amp;P 1500 Index, has increased 28.3% in 2013 through September 13 versus the 18.8% gain for the S&amp;P 1500 and is the best performing sector year to date," according to a new research note by S&amp;P Capital IQ.

	Related: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/08/3809455/s-p-heaping-praise-for-some-health-care-etfs">Heaping Praise For Some Health Care ETFs</a>.

	S&amp;P Capital IQ notes that there are 10 sub-industries within the health care sector and nine are outpacing the broader market year-to-date. The "laggard" is health care equipment, which is up "just" 17.1 percent this year. As <a href="http://www.benzinga.com/markets/bonds/13/04/3511912/these-etfs-are-trumping-capitol-hill">was previously highlighted</a>, health care equipment names could be vulnerable to an oft-overlooked provision in Obamacare that introduced a new tax on medical device makers.

	Even with that, the iShares U.S. Medical Devices ETF (NYSE: <a class="ticker" href="/stock/ihi#NYSE">IHI</a>) is up almost 24 percent this year and touched a new 52-week high Wednesday.

	Biotechnology, managed care and pharmaceuticals stocks have soared this year, helping some familiar <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3809192/three-soaring-but-overlooked-health-care-etfs">and overlooked health care ETFs</a> deliver stellar returns.

	S&amp;P Capital IQ has an Overweight rating on the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>), the largest health care ETF by assets. With a 31.6% year-to-date gain, XLV is the best performer among the nine SPDR ETFs. The $7.6 billion fund's 56 holdings have a weighted average market value of $93.7 billion, indicating a heavy bias toward large-cap, blue-chip names.

	That is exactly what investors get with XLV as Dow components Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Merck (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) combine for 29.5 percent of the ETF's weight. Those three stocks also represent the top-three holdings in the Vanguard Health Care (NYSE: <a class="ticker" href="/stock/vht#NYSE">VHT</a>), combining for 25.2 percent of that fund' weight.

	VHT's 0.14 percent expense ratio is slightly below the 0.18 percent charged by XLV and enough to make the Vanguard offering the cheapest health care ETF on the market. VHT has returned 32.7 percent year-to-date and is also rated Overweight by S&amp;P Capital IQ.

	The pharmaceuticals sub-industry "has moved sideways over the past 
	several months, following a sharp rise in the first half of the year that we see correlated to Treasury yields," said S&amp;P Capital IQ. "When Treasury yields were lower at the beginning of the year, we believe income-focused investors were 
	attracted to the 3-4% dividend yields offered by big pharmaceutical firms."

	The iShares U.S. Healthcare ETF (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>) also earned an Overweight rating from S&amp;P Capital IQ. Like its rivals, IYH devotes a significant portion of its weight to J&amp;J, Pfizer and Merck. Those stocks combine for 27.5 percent of IYH's weight, but also like its rivals, IYH features several biotech names among its top-10 lineup and that has helped lift the ETF to 32.4 percent gain this year.

	Investors looking for some international sector exposure without a significant uptick in volatility may want to consider the iShares Global Healthcare ETF (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>). That ETF also garnered an Overweight rating from S&amp;P Capital IQ and the research firm <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/08/3876854/plenty-of-etfs-with-favorable-risk-traits">previously lauded the ETF for favorable risk characteristics</a>.

	J&amp;J is IXJ's largest holding, but with a weight of just 7.8 percent. Novartis (NYSE: <a class="ticker" href="/stock/nvs#NYSE">NVS</a>), GlaxoSmithKline (NYSE: <a class="ticker" href="/stock/gsk#NYSE">GSK</a>) and Sanofi (NYSE: <a class="ticker" href="/stock/sny#NYSE">SNY</a>) are also found among IXJ's top-10 holdings. Foreign pharmaceuticals names offer investors a bit more yield as IXJ has a 30-day SEC yield that is more than 50 basis points higher than IYH, but that added yield does not mean added volatility. IXJ has three-year standard deviation of about 12 percent compared to 12.3 percent for IYH, <a href="http://us.ishares.com/product_info/fund/overview/IXJ.htm?fundSearch=true&amp;qt=IXJ">according to iShares data</a>.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author is long JNJ.

Write A Prescription For Health Care ETFs

Big winners (up at least 5%): None.

	Big losers (down at least 5%): C-Tracks Citi Volatility Index TR ETN (NYSE: <a class="ticker" href="/stock/cvol#NYSE">CVOL</a>), UBS E-TRACS S&amp;P 500 Gold Hedged Idx ETN (NYSE: <a class="ticker" href="/stock/spgh#NYSE">SPGH</a>), VelocityShares Daily 2x VIX ST ETN (NYSE: <a class="ticker" href="/stock/tvix#NYSE">TVIX</a>) and the ProShares Ultra VIX Short-Term Fut ETF (NYSE: <a class="ticker" href="/stock/uvxy#NYSE">UVXY</a>).

	Unusual volume (at least 5X ADV): iShares MSCI Chile Investable Market ETF (NYSE: <a class="ticker" href="/stock/ech#NYSE">ECH</a>), WisdomTree Global ex-US Growth ETF (NYSE: <a class="ticker" href="/stock/dnl#NYSE">DNL</a>), First Trust United Kingdom AlphaDEX ETF (NYSE: <a class="ticker" href="/stock/fku#NYSE">FKU</a>), iShares MSCI Global Energy Producers ETF (NYSE: <a class="ticker" href="/stock/fill#NYSE">FILL</a>), PowerShares DB Commodity Double Long ETN (NYSE: <a class="ticker" href="/stock/dyy#NYSE">DYY</a>) and the iShares S&amp;P Global Healthcare ETF (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>).

	Must reads of the day

	Water <a href="http://seekingalpha.com/article/1687482-face-off-two-water-resource-etfs-to-profit-from-the-worldwide-demand-for-clean-water?source=feed">ETFs do battle</a>.

	Morningstar <a href="http://seekingalpha.com/article/1688132-bond-convertible-bond-a-secret-agent-for-your-equity-allocation">comes to the CWB party</a>. That is nearly two months after we <a href="http://www.benzinga.com/markets/bonds/13/07/3756954/bond-etfs-to-cope-with-rising-interest-rates">rang the bell on that ETF</a>.

	Fabian Capital Management on how <a href="http://fabiancm.com/strengthen-portfolio-core/">to boost your core</a>. Your portfolio core that is, not your abs.

	Jeff Gundlach likes <a href="http://blogs.marketwatch.com/thetell/2013/09/10/jeff-gundlach-to-answer-the-question-what-if-on-tuesday-afternoon/">China, Russia and gold miners</a>. India, not so much.

	Nifty <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3905680/three-diversified-em-etfs-your-broker-forgot-to-mention">emerging markets ETFs</a> to consider before it's too late.

	High <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3903777/juiced-beta-with-this-emerging-markets-etf">beta with this ETF?</a>. Maybe, maybe not, but it is performing well.

	Don't forget to follow me on Twitter: <a href="https://twitter.com/ETFProfessor1">@ETFProfessor1</a>.

Broad U.S. Equity ETFs

After-Hours Center

CVOL

FILL

TVIX

UVXY

Benzinga's Mandatory ETF Reading for September 11, 2013

Including dividends paid, the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) has gained 16.4 percent year-to-date, a move that might imply risk appetite at the sector level has been high in 2013.

	While the higher-beta consumer discretionary and financial services sectors have been leadership groups this year, so have more docile sectors such as consumer staples and health care.

	The risk-off tenor to this bull market is not new. Aside from consumer discretionary, it has been conservative, lower beta sectors that have done much of the leading for over three years.

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3447304/risk-on-rally-these-etfs-say-no">Risk On Rally? These ETFs Say No</a>.

	Investors looking for ETFs with favorable risk characteristics have plenty of options ranging from sector funds to non-U.S. developed market plays to dividend ETFs. Those looking for a wide array favorable risk ETFs can mull a group of 13 recently highlighted by S&amp;P Capital IQ.

	"This group of 13 ETFs includes a diversity of size, geographies and recent performance. However, all of them are also 
	ranked Overweight in our Risk Considerations category, and have a beta of less than 0.8, which means that they have shown less volatility than the S&amp;P 500 during the past three years," said S&amp;P Capital IQ in a new research note.

	The group of 13 includes ETFs from four providers – iShares, State Street Global Advisors, Vanguard and WisdomTree. "Our list of 13 includes seven ETFs with a domestic stock emphasis, and six having more of an international or global weighting. However, keep in mind than when an ETF has a heavy concentration of U.S. stocks, this may include shares of large multi-national companies such as Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) or Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>)," said S&amp;P Capital IQ.

	S&amp;P Capital IQ's list of 13 ETFs with favorable risk traits includes four consumer staples sector funds: The Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>), the Vanguard Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>), the SPDR S&amp;P International Consumer Staples Sector ETF (NYSE: <a class="ticker" href="/stock/ips#NYSE">IPS</a>) and the iShares Global Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/kxi#NYSE">KXI</a>).

	Staples ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3465648/staples-etfs-rally-heres-why-it-can-continue">started 2013 in banner fashion</a>. XLP, the largest staples ETF, and VDC, the cheapest staples ETF, are up an average of 15 percent year-to-date. However, the sectors has withered a bit in the face of rising U.S. interest rates. XLP, VDC and IXJ all have negative returns over the past 90 days. Still, all three earn Overweight ratings from S&amp;P Capital IQ while IPS garnered a Marketweight rating.

	Health Care ETFs 
	S&amp;P Capital is similarly constructive on health care ETFs. The Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) and the iShares U.S. Healthcare ETF (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>), two ETFs that are heavy on blue-chip pharmaceuticals stocks like J&amp;J, Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Merck (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) along with large-cap biotechnology names, earned Overweight ratings from S&amp;P Capital IQ.

	However, the health care sector is home to some <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3809192/three-soaring-but-overlooked-health-care-etfs">under the radar ETFs</a> that also merit consideration. For example, the iShares MSCI ACWI ex U.S. Healthcare ETF (NYSE: <a class="ticker" href="/stock/axhe#NYSE">AXHE</a>) and the SPDR S&amp;P International Health Care Sector ETF (NYSE: <a class="ticker" href="/stock/iry#NYSE">IRY</a>) have less than $70 million in assets under management combined, but both have offered double-digit returns this year.

	Investors looking for a global spin on health care without excluding the U.S. can consider the iShares Global Healthcare ETF (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>). Like XLV and IYH, IXJ has risen over the past 90 days, indicating health care ETFs can be durable in rising interest rate environments. All of the aforementioned health care ETFs earned Overweight ratings from S&amp;P Capital IQ.

	Dividends, Japan

	Two of this year's more prominent ETF themes have been the massive inflows to dividend funds and Japan ETFs. The Overweight-rated WisdomTree Japan Hedged Equity Income Fund (NYSE: <a class="ticker" href="/stock/dxj#NYSE">DXJ</a>) and the iShares MSCI Japan ETF (NYSE: <a class="ticker" href="/stock/ewj#NYSE">EWJ</a>) are two of three most prolific asset-gathering ETFs this year.

	"US and Japanese Equity exposures account for the bulk of the year-over-year Equity flow growth. Both equity markets have been bolstered by accommodative Central Bank monetary policies, <a href="http://www.benzinga.com/markets/bonds/13/08/3812508/july-etf-inflows-top-44-billion#ixzz2dR7Q77Dp">said BlackRock earlier this month</a>.

	"As noted, all 13 of the ETFs were ranked Overweight in S&amp;P Capital IQ's Risk Factors category. There are four analytical inputs in this category, including the S&amp;P Quality Ranking, which assesses long-term growth and stability of earnings and dividends; and the Standard &amp; Poor's Credit Rating," said S&amp;P Capital IQ.

	Speaking of dividends, the number of dividend ETFs on the market has grown by 75 percent since 2010 and at $87 billion in assets, dividend exchange-traded products represent 5.7 percent of all ETF and ETN assets in the world, according to BlackRock.

	In terms of risk characteristics, S&amp;P has an Overweight rating on the Vanguard High Dividend Yield Index ETF (NYSE: <a class="ticker" href="/stock/vym#NYSE">VYM</a>) and a Marketweight rating on the WisdomTree LargeCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dln#NYSE">DLN</a>).

	The Marketweight rating on DLN might be a tad harsh given the ETF's nearly 63 percent three-year return. Additionally, DLN is useful to income investors on multiple fronts. While the fund is more than adequately positioned <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3845663/etfs-for-dividend-consistency">as a consistent dividend play</a>, DLN is not excessively exposed to rate-sensitive utilities or telecom stocks.

	Just as important, DLN is well-positioned to help investors take advantage of future dividend growth with a combined a 36 percent weight to technology, financial services and discretionary names, the sectors that have been leading S&amp;P 500 dividend growth over the past few years.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author is long DXJ.

Dividends

Global

AXHE

WisdomTree Trust Japan Total Dividend Fund

SPDR S&P Internationalnsumer Staples Sector ETF

SPDR S&P International Health Care Sector ETF

Plenty Of ETFs With Favorable Risk Traits

Conservative investors and risk-takers alike have been rewarded for owning U.S. health care stocks and ETFs focusing on those names in recent years. 

The data supports that assertion. A look at three major health care ETFs, all of which do things a little bit differently, shows significant out-performance of the S&amp;P 500 over various time frames.

For example, the Health Care Select SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) is up <a href="http://www.sectorspdr.com/eqsnaps/?do=charting&amp;symbol=SPY&amp;tList=XLV&amp;startPeriod=Last+3+Years">30.3 percent in the past five years compared to 12.3 percent for the S&amp;P 500</a>. 

Since December 2011 when it became a Market Vectors fund, Market Vectors Pharmaceutical ETF is up almost 20 percent. The iShares Nasdaq Biotechnology ETF (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) has nearly doubled in the past five years.

Bottom line: Investors have done well when staying at home with U.S. health care stocks, but that does not mean there are not global opportunities worth considering. After all, some of the biggest health care companies in the world are not U.S. firms. 

France's Sanofi (NYSE: <a class="ticker" href="/stock/sny#NYSE">SNY</a>) and Israel's Teva Pharmaceuticals (NASDAQ: <a class="ticker" href="/stock/teva#NASDAQ">TEVA</a>) stand as just two examples.

Here is a look at some international developed market health care ETFs to see if going global with this sector is a better idea than staying domestic.

iShares S&amp;P Global Healthcare Sector Index Fund (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>)
One thing about the iShares S&amp;P Global Healthcare Sector Index Fund that is important to note is that it is a global fund and that means U.S. stocks are included. 

Actually, the U.S. might loom too large in IXJ (almost 60 percent of the ETF's weight), diminishing international exposure in the process. Switzerland is the only other country to land a double-digit allocation in IXJ.

Through the end of last year, IXJ's net asset value had gained 10 percent over the past three years and 4.3 percent over the past five, two performance's that are better than ETF's underlying index over the same times, <a href="http://us.ishares.com/product_info/fund/overview/IXJ.htm">according to iShares data</a>. Obviously, that five-year run does not compare favorably with XLV. In IXJ's favor, it is worth noting the $645 million ETF has a beta of just 0.95 against the S&amp;P 500.

iShares MSCI ACWI ex US Health Care Sector Index Fund (NYSE: <a class="ticker" href="/stock/axhe#NYSE">AXHE</a>)
To take the U.S. out of the health care equation, investors have a few ETF options and one is the iShares MSCI ACWI ex US Health Care Sector Index Fund. 

Pharmaceuticals names account for 80 percent of this fund's weight, leaving only token exposure to health care equipment makers, services providers and biotechnology names.

It is hard to argue with AXHE's composition, though, as the ETF has returned 36.6 percent since its July 2010. The problem with AXHE is that this is the type of ETF naysayers love to hate. It has less than $13.7 million in assets under management and trades just 2,500 shares per day.

Focusing on those statistics could mean glossing over the fact that plenty of AXHE's 68 holdings can be described as heavily traded, such as Sanofi, Teva and AstraZeneca (NYSE: <a class="ticker" href="/stock/azn#NYSE">AZN</a>). Heavy on developed markets, AXHE's <a href="http://us.ishares.com/product_info/fund/overview/AXHE.htm">has slightly outperformed its index since inception</a>. 

SPDR S&amp;P International Health Care Sector ETF (NYSE: <a class="ticker" href="/stock/iry#NYSE">IRY</a>)
The SPDR S&amp;P International Health Care Sector ETF is the more senior member of the ex-U.S. health care ETF duo, having debuted in July 2008. The $32.5 million fund has returned an admirable 21.6 percent in the past two years. 

While AXHE and IRY both focus heavily on non-U.S. large-cap pharmaceuticals names, there are important differences between the two. For example, IRY is home to 117 holdings compared to 68 for AXHE and the SPDR offering is slightly more expensive with an annual expense ratio of 0.5 percent compared to 0.48 percent for AXHE.

Roche (OTC: <a class="ticker" href="/stock/rhhby#OTC">RHHBY</a>) and Novartis (NYSE: <a class="ticker" href="/stock/nvs#NYSE">NVS</a>) are the top two holdings in both ETFs, but that pair represents over 25 percent of AXHE's weight while accounting for 22.4 percent of IRY's. IRY also features slightly smaller allocations to pharmaceuticals at the sector level and to Switzerland at the country level.

One thing investors might like about IRY over AXHE: A lower beta. IRY's is <a href="https://www.spdrs.com/product/fund.seam?ticker=IRY">0.60</a> compared to 1.1 on AXHE.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Intraday Update

RHHBY

TEVA

Are Global Health Care ETFs Worth Prescribing?

In the days leading up to last week's presidential election, much attention was paid to health care ETFs. The theory being that those ETFs tracking hospital stocks and pharmaceuticals makers would keep thriving if President Obama won reelection. The President did win, but with the market plunging over the past week, it feels like even the <a href="http://www.benzinga.com/markets/bonds/12/10/3040448/in-7-days-an-obama-win-could-send-these-etfs-soaring"> the ETFs that should have benefited the most</a> are not doing much of anything.

The broader market's recent pullback may have created a buying opportunity in select health care ETFs that some investors have been waiting for. Along those lines, S&amp;P Capital IQ has raised its rating on the sector to Overweight from Marketweight. The firm has also placed Overweight ratings on six health care ETFs.

"Sam Stovall, S&amp;P Capital IQ's Chief Equity Strategist, noted that the health care group is trading at a 17% discount to its median relative P/E ratio since 1995, and that six of its 10 sub-industries are projected to post above-market EPS growth in 2013," the firm said in a research note.

Several of the ETFs to garner Overweight ratings from S&amp;P Capital include funds that are heavy on blue-chip pharmaceuticals names such as the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>). XLV, has an expense ratio of 0.18 percent and assets under management of nearly $5.5 billion, making it the least expensive and largest health care ETF. The rival Vanguard Health Care ETF (NYSE: <a class="ticker" href="/stock/vht#NYSE">VHT</a>) is also rated Overweight by S&amp;P Capital IQ.

Both funds are heavily allocated to familiar pharmaceuticals names such as Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>), Merck (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) and Abbott Labs (NYSE: <a class="ticker" href="/stock/abt#NYSE">ABT</a>). However, both have been punished in recent weeks. XLV is off 5.5 percent in the past month while VHT is down more than six percent over the same time.

Regarding the pharmaceuticals group, "S&amp;P Capital IQ sees both sales and EPS gains in 2013 within several of the large-cap names after expected declines in 2012. Although patent expiration will likely adversely impact this sub-industry over the next several years, Loo notes that several major drugs, such as Lipitor, that went off-patent have anniversaried, making comparable sales and EPS easier in 2013," the firm said in the note.

The SPDR S&amp;P Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/xph#NYSE">XPH</a>), which is not as heavily concentrated on the largest drug makers, has plunged 11.2 percent in the past month and is trading at its lowest levels since June. XPH was also rated Overweight by S&amp;P Capital IQ.

Regarding exposure to managed care providers, which have also been under some pressure lately, S&amp;P sees some opportunities with this sub-sector as well. 

S&amp;P analyst Jeff Loo believes the battle moves from Republicans attempting to repeal the law to some Republicans resisting the implementation of certain parts of the law, mainly the creation of state healthcare exchanges and the expansion of Medicaid. Loo thinks these issues have resulted in some short term downward pressure on some healthcare sub-industries, particularly the managed care sub-industry, according to the note.

"However, he believes the vast majority of states will eventually participate in the expansion of Medicaid, as the law offers the states very generous terms. S&amp;P Capital IQ see this as benefiting the managed care sub-industry. Separately, Loo and team also view positively this group's efforts to diversify internationally as well."

The ETF play on the managed care sub-sector could be the iShares Dow Jones U.S. Healthcare Providers Index Fund (NYSE: <a class="ticker" href="/stock/ihf#NYSE">IHF</a>), which S&amp;P rates Overweight. Dow component UnitedHealth (NYSE: <a class="ticker" href="/stock/unh#NYSE">UNH</a>) and Express Scripts (NASDAQ: <a class="ticker" href="/stock/esrx#NASDAQ">ESRX</a>) combine for nearly 26 percent of IHF's weight. Other top holdings include WellPoint (NSYE: WLP), Aetna (NYSE: <a class="ticker" href="/stock/aet#NYSE">AET</a>) and Humana (NYSE: <a class="ticker" href="/stock/hum#NYSE">HUM</a>).

S&amp;P also placed overweight ratings on the iShares Dow Jones U.S. Healthcare Sector Index Fund (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>) and the iShares S&amp;P Global Healthcare Sector Index Fund (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>).

For more on health care ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3075943/medical-device-etfs-flash-bearish-technicals-fundamentals-pos">here</a>.

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