ETFs & Obamacare: The Broccoli ETF Reply

“If Congress can force me to buy health insurance, can it also force me to eat broccoli?”…

That question, according to WallachBeth Capital’s Chris Hempstead, is one that he can’t answer, but Hempstead does have a sharp-as-a-scalpel perspective re: the ETFs to put under a microscope as the US Supreme Court is scheduled to perform surgery on President Obama’s healthcare initiative:

IHF: IShares DJ US Healthcare Providers (77% Healthcare Services and 17% Pharma)

Year to date the IHF fund is +11.6% and since Obamacare passed +24% versus SPX of 12.6% and 20% respectively.

PTH: PowerShares Dynamic Healthcare Sector (25% Pharma, 25% Healthcare Products, 24% Healthcare Services and 14% Biotech)

YTD the PTH fund is +12.6% (SPX 12.6%) and since Obamacare +28% (SPX 20%).

FXH: First Trust Health Care AlphaDEX (30% Pharma, 30% Healthcare Services, 24% Healthcare Products and 12% Biotech)

YTD the FXH fund is +13% (SPX 12.6%) and since Obamacare +29% (SPX 20%).

YTD  XLV is +7.9% (SPX 12.6%) and since Obamacare +16% (SPX 20%).  XLV has an expense ratio of .18%.

 

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