The Health Care ETF Investing funds finally know what direction this sector is moving in America with the long wait being over and the Obama health care bill is finally signed into law. Most of these health care ETF’s stock prices rose on Monday then slightly falling off on Tuesday after all the hype faded away.
The publisher of ETFGuides.com, Ronald DeLegge has the same thoughts on this bill as most other do when he said “’OK, now it’s passed into law.’ But it’s difficult to say what it’s going to mean or translate into as far as profit margins. It will create more customers and it will create more competition.”
The ETF’s that have holdings that include pharmaceutical companies saw their stocks rise, like Vanguards Health Care ETF (VHT) which has over 42% of its holdings in pharmaceutical companies with a total of 306 stocks in the assets. By mid week they gave back half of the gains that had been achieved on Monday. But this did not happen to all of them. Pharmaceutical HOLDRs (PPH) has maintained their gains all week from the bill signing. This fund only has 16 company stocks which all did fairly well and is nearly all are of pharmaceutical companies.
With no one knowing exactly what is in the bill including the law makers according to Nancy Pelosi, some uncertainty will remain for a period of time. What is certain is that millions of new customers will be forced to purchase health insurance and the costs of this care will continue to rise.
Health care in America use to be about healing the sick. Today it is just another way to make money, and ETF Investing in health care should bring profits in the long term because of it.
Short term is uncertain but for long term investment the Health Care ETF Investing should be a part of an investor’s portfolio.
For additional resources about ETF on this website, please view Best S&P 500 ETF Funds , Best Leveraged ETFs and Best Fixed Income ETFs
If you would like to compare these funds to one of Vanguards than please try Vanguard FTSE All-World ex-US ETF on our sister site www.bestmutualfundsnow.com and Best Asia ETFs on stockmarketinvestingblog.com.
We strive to bring you the latest and most accurate data possible from the home sites of the investment institutions we name. Always remember the bigger the risk, the larger the reward or loss. Invest with caution.
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