Pharmaceutical EFTs Dance to Their Own Tune
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Top Pharmaceutical ETFs are up double digits so far this year, including iShares Dow Jones US Pharmaceuticals (NYSE: IHE), Market Vectors Biotech ETF (NYSE: BBH) and First Trust Health Care AlphaDEX (NYSE: FXH).
Pharma and Biotech ETFs offer investors an interesting alternative to traditional ETFs, since the value of the underlying holding often have lower correlation (or negative correlation) to the S&P 500 than cyclical, counter cyclical, or even tech stocks.
Illnesses and diseases have always been recession proof, so there is a defensive play here, but pharma has always been about drug creation and distribution, and the opportune words here are growth, growth, and more growth.
Speaking of growth, Market Vectors Biotech ETF could get a shot in the arm today with 5% holding Vertex Pharmaceuticals (Nasdaq: VRTX) rising 60 percent in pre-open trading Monday after showing statistically significant lung function results for patients with cystic fibrosis.
Pharma and Biotech ETFs offer investors an interesting alternative to traditional ETFs, since the value of the underlying holding often have lower correlation (or negative correlation) to the S&P 500 than cyclical, counter cyclical, or even tech stocks.
Illnesses and diseases have always been recession proof, so there is a defensive play here, but pharma has always been about drug creation and distribution, and the opportune words here are growth, growth, and more growth.
Speaking of growth, Market Vectors Biotech ETF could get a shot in the arm today with 5% holding Vertex Pharmaceuticals (Nasdaq: VRTX) rising 60 percent in pre-open trading Monday after showing statistically significant lung function results for patients with cystic fibrosis.
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