Healthcare Sector Strategies: You Need A Little Biotech

Healthcare Sector Strategies: Many Flavors for Biotech Investing

• Consider adding ETFs to ‘spike” your portfolio when re-balancing. e.g XLE

• Biotech stocks are a growth component of your healthcare portfolio – add with a fund or an ETF.

• A few high-profile genomics stocks have provided huge returns over one year: Adaptive Biotechnologies (ADPT) up 109%, Guardant Health (GH) up 213%, and Personals (PSNL) up 218%.

Two trends have kept the rolling bull market alive: the rotation by sector almost on a weekly basis, and positive earnings reports that drive prices higher. But as we approach the end of August, keep in mind that seasonality can work against you, particularly as the  “smoldering” War drags on with energy prices “scalping” the economy. Healthcare stocks' performance is improving, and the market in general is beginning to “normalize” to equal weight. If you did not re-balance your portfolio during these sector shifts, you are probably underperforming the S&P 500, which is up about 13% YTD. Over the past month, the following sectors have been strong: energy, financials, and healthcare, but Information Technology plays such an important part in the economy because of huge capital flows of AI; they must be allocated and overweighted in a portfolio. Just over the past week, the XLK was up 6% despite languishing for the month. But it's easy to get mentally consumed by volatile technology stocks; rebalance your portfolio with financial, energy, and healthcare stocks.

Here is a performance summary after the big rally of the recent week ending 8/9/26:

7/25/26   Baseline for Portfolio allocation:                          8/9/26

DOW 519.47, DIA Up 7.95% YTD               539.62, Up 12.29% YTD

S&P 500 7411.98, SPY Up 8.36% YTD        773.26,  Up 13.39% YTD

Nasdaq 24975.8, QQQ Up 11.38% YTD.     723.00, Up 17.7% YTD

XLV 162.57, Up 5.02% YTD.                          165.68, Up 7.03% YTD

IBB 188.14, Up 11.48% YTD                          197.78, Up 17.1% YTD

ARKG 37.81,  Up 30.51% YTD.                       43.04, Up 48.57% YTD

XBI 150.63, Up 23.42% YTD                            157.37,  Up 20.07% YTD

XLE 59.62, Up 33.35% YTD.                             57.50,   Up 28.6% YTD

XLK 175.88, Up 22.16% YTD.                            187.97,  Up 30.56 % YTD

Recent Notable SMID Stock Picks

1. Review our July post and updates on individual biotech stocks and ETFS and compare them to your portfolio. If you read our blog weekly and do some rebalancing, you should own some of our best-performing stocks: ADPT, AMRX, COGT,  DNTH, GH, ILMN, NTRA, PSNL, PTGX, XNCR.

2. If you don’t feel comfortable picking individual stocks, you could have easily beaten the S&P 500 by including some biotech ETFS, ARKG and XBI in your portfolio.

3. Three recent Mid-cap healthcare stock value picks have outperformed: BAX, GEHC, WAT.

4. One of our Fund Picks has outperformed the S&P 500 Fidelity Select Biotechnology Portfolio (FBIOX), up 16.49%.