Healthcare Sector Update: MedTech Trending Up

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The major market leadership thus far has been large-cap tech with frequent sector rotation. Healthcare is thought to be a defensive sector but you need to balance your portfolio in comparison to other sectors. The NASDAQ-100 (QQQ) is up over 19% YTD mainly led by tech giants like AAPL, GOOGL, and MSFT. Healthcare shares (XLV) rallied off March lows but are still down YTD. Almost the same trend emerged with the IBB in a tight range from March  $122 lows off $138 January highs. The S&P 500 is near the top of its expected range 0f 4200 according to many strategists with risks to the downside mainly PE compression from less earnings growth and rising rates.

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Recently we have seen some positive momentum in MedTech with the IHI and yesterday supported by revenues from medical device blue chips Abbott ( ABT), Intuitive Surgical (ISRG), and Johnson/Johnson (JNJ). Earnings from major device companies and large-cap biopharma over the next 2 weeks will help us ascertain risks for the market.

Here is our sector and ETF model with performance over one year.

Model                      
PORTFOLIO                      
    2020   2020 2020 2021 2022 2023 2023    
Stock/ETF Ticker Price Wgt Price   Price P 1Y Price YTD  
    10/25 % 12/31 % Perf 12/31/21 12/31/22 %Perf 4/19 % Perf Trend
                       
iShares NAZ Bio IBB* 136 15 151.5 25.7 152.62 130.55 3.82 133.22 -1.47
                       
iShares Russell 2k IWM 163 10 196.4 18.3 222.45 174.36 -11.56 178.25 2.23 d
Merck* MRK 80 10 81.77 -10 76.64 110.81 33.03 114.13 2.87 u
United Health UNH 330 15 350.7 27.19 502 530.27 -9.58 486.2 -8.3
SPDR S&P Bio XBI 117 10 140.8 48 111.96 83 -2.66 82.35 -0.75
Healthcare SPDR XLV 108 20 113.4 14.71 140.89 135.88 -3.23 133.95 -1.4
T.Rowe Hlth Sci PRHSX n/a 5 99.65 n/a 104 89 -3.49 91.04 1.36
iShares U.S MedT IHI 50 10 54.83   65.85 52.57 -6.17 56.77 7.99 u
MedTech* ABT new 5 123.5   127.46 109.83 -6.41 112.29 2.28 u
                       
Tracking Comp                      
                       
ARK Genomic ARKG     93.26   61.24 28.23 -25.95 30.85 9.28
Direx3X Bull LABU           7.66 -52.66 5.97 -15.56 d
FIDO Biotech FBIOX     25.18   19.35 16.04 4.96 16.5 -1.35
FiIDO MEDtech FSMEX     76.15   83.18 61.58 (2.960 67.13 9.01 u
                       
DOW DIA     310   363.32 331.34 -2.9 338.98 2.31
S&P 500 SPY     379   475 382.41 -6.94 414.14 8.29
NASDAQ-100 QQQ     315   397.85 266.33 -7.96 318.72 19.69 u
                       
Top Biopharmas                      
                       
Abbvie ABBV           161.64 3.11 161.21 -0.25
Bristol Myers Sq BMY           71.58 -8.56 69.86 -2.9
Gilead Sci GILD           85.39 33.98 84.11 -2.03 u
Eli Lilly LLY           362.94 24.73 370.47 1.27 u
Merck MRK           110.94 33.03 114.13 2.87 u
Pfizer PFE           51.24 -19.81 40.24 -21.17 d
Regeneron REGN           721.7 12.93 808.86 12.11 u
Vertex VRTX           288.78 16.26 328.45 13.74 u
                       
                       
                       
                       
                       
       

More By This Author:

April Is Busting Out For Healthcare And Biotech
Large Cap Biopharmaceuticals Q1 2023: In This Bullish Run Biotech Lags
Biotech And Life Science Trades: Q1 2023 Performance By The Numbers

Disclosure: Long ABT, ABBV, BMY, IBB, GILD, LLY< IHI, REGN, UNH, VRTX, XBI. Also funds FSMEX and PRHSX.

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