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You Need To Know About This Healthcare ETF

TedTed
edited February 2015 in Fund Discussions
FYI: With healthcare stocks and exchange traded funds hitting new highs on almost daily basis, it is easy for some of the group’s smaller members to get lost in the shuffle.
Regards,
Ted
http://www.etftrends.com/2015/02/you-need-to-know-about-this-healthcare-etf/

M* Snapshot Of IRY: http://performance.morningstar.com/funds/etf/total-returns.action?t=IRY&region=usa&culture=en-US

M* Snapshot Of XLV: http://performance.morningstar.com/funds/etf/total-returns.action?t=XLV&region=usa&culture=en-US

Comments

  • Love healthcare investments... but buying at "all-Time" highs....some touchy stuff
    Look for Drops...good luck
  • TedTed
    edited February 2015
    @TPA: I wonder how many time healthcare stock and funds have reached all-time highs since 2013. I thought trees grew to the sky !
    Regards,
    Ted
  • The Taller a Tree...the farther the fall
    Reminds me: you Don't need a parachute to skydive! only if you want to do it twice....
  • IRY is thinly traded. The volume on 2/26 was 4833 shares per StockCharts.com. The average daily volume is 19,723 per etftrends.com. A spot check of prices on 2/27 at 10 AM EST on TradeMonster showed $51.00 Bid and $51.25 Ask. Besides, who wants to be told, "You need to..."?
  • @heezsafe: Thank you !
    Regards,
    Ted
  • I have been considering SBIO if there is a pullback, but IRY could be interesting.
  • I think I will keep my PJP up 13.95% ytd five year average total return 33.47. Just wish I had bought it five years ago instead of two. You could not go wrong with almost any health care fund or etf in recent years. Lots of great funds and etfs to choose from.
  • I have seen several biotech manias in my investing career......
    They seem to last several years, both wildly up and morbidly
    down....big beta but only 50 % of the time with alpha.

    Biotech is great innovation for major global needs.
    No denying that breakthrough Rx are here to stay.

    Just don't get in on the wrong side to the slope of the trend
    line in this sector or you will need to own these funds for years.

    Good trade around plays.....but too much beta for core position
    for most but MD/Ph.D type of investors......

    IBB and FBIOX are the ones I follow.
  • as much as i fear the bio bear, going back to 2005 via FBIOX, near as i can tell, there's never been a correction where you had to hold "for years" before you got out of the hole if you bought at the top. are you talking about some pre 05 mania? i mean, if nothing else, it looks to me like the wildly up has been going on for at least a decade.
  • @linter,
    It seems to me that the bigger possibility is that the larger biotech companies with cash will buy out the weaker ones during a big downturn, provided they have a promising pipeline. In other words, it is 50% off sale time.
  • John: I like that kind of thinking! Meanwhile, what, if anything, are you buying or have you bought to take advantage of his happy prospect?
  • Obviously, not John, but we have been adding to FHLC. And will travel away if this area starts to flounder........ hopefully, to maintain profits.:)

  • edited March 2015
    @linter, I have not bought any biotech directly or via etf. Mostly they are through the funds I own. One if my main funds uses the Russell 1000 Growth index as a benchmark, (ACDJX) so there is good presence of biotech there.

    I'm just recalling from way back. Amgen was a winner back then. It is a risky sector indeed as many of these companies only have one product, boom or bust. But the future of healthcare is in the biotech industry.
  • thanks, john.
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