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Sector investing — it's a typical strategy for advisors if their clients are looking beyond broad market exposure by targeting a specific sector. The concept is fairly straightforward, but implementing the strategy is not as simple as it sounds.
Healthcare isn't going anywhere. An aging population, chronic disease management, and breakthrough treatments ensure this sector remains essential regardless of market conditions.
The State Street Health Care Select Sector SPDR ETF ETF (XLV) was launched on December 16, 1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.
Over the past three years, healthcare has been among the worst-performing sectors. 2026's market rotation away from tech is bringing new life to more defensive areas of the market.
Three of the smallest sectors in the S&P 500 delivered the index's strongest performance in January, while the two largest sectors weighed on returns. The broad market index gained modest ground last month, with the State Street SPDR S&P 500 ETF Trust (SPY) up 0.6%, according to ETF Database.
U.S. consumer confidence hits a decade low. Defensive, quality & dividend ETFs like XLP, XLV, XLU, SPHQ & VYM may offer shelter.
Index investors and so-called Bogleheads (those who love the Vanguard ETFs) may not be all too fond of the sector ETFs, especially when you consider that simply buying the S&P 500 covers most of one's bases when it comes to diversification.
Flat Medicare Advantage rate hikes hit insurers hard, but diversified healthcare ETFs may help investors weather the policy shock.
BBH: Mature Biotech Exposure, But Limited Growth Ahead
The Health Care sector, lagging in recent years, is positioned for mean reversion and potential outperformance in 2026. XLV offers low-cost, passive exposure to large-cap Health Care, with a 1.4-1.8% yield and a 19.94x forward P/E. BME, an actively managed closed-end fund, provides a 7.51% yield, trades at a -5.97% NAV discount, and distributes mainly long-term capital gains.
A golden yield-and-growth combo is something most investors assume they'll rarely find. Defensive income machines keep quietly compounding at double-digit rates. This trio could change how you think about dividend ETFs.
December jobs data highlight sector shifts as healthcare and restaurants add jobs, while retail lags. ETFs XLV, EATZ in focus.
After a late-2025 rebound eased policy fears, healthcare ETFs like IXJ are gaining attention as investors position for a sector comeback in 2026.
Defensive stocks are defined as the stocks in companies that are grouped in sectors supplying goods and services in constant demand as essentials, and thus, do not follow trends of popularity.
Health care ETFs could emerge as one of the stronger performers in 2026 as investors grow cautious about pricey AI stocks.
Health Care Select Sector SPDR Fund (NYSEARCA:XLV - Get Free Report) was the target of a significant decline in short interest in the month of December. As of December 15th, there was short interest totaling 13,529,552 shares, a decline of 18.0% from the November 30th total of 16,491,490 shares. Approximately 5.3% of the company's shares
Health Care Select Sector SPDR Fund (NYSEARCA:XLV - Get Free Report) saw unusually large options trading activity on Friday. Traders acquired 38,384 put options on the company. This is an increase of approximately 75% compared to the average volume of 21,944 put options. Health Care Select Sector SPDR Fund Stock Up 0.2% Shares of NYSEARCA
The market looks set to maintain momentum into the New Year with investment in AI infrastructure continuing. But several other sectors are positioned for growth as well.
Jared Holz, Mizuho, joins 'Power Lunch' to talk how to play healthcare and biotech moving into 2026.
XLV and similar healthcare ETFs are gaining momentum as strength in biotech, increased AI adoption, and rising defensive demand position the sector for year-end leadership.