The negative sentiment was driven by a number of reasons. After a multi-year rally, several analysts and investors began questioning valuation. Issues such as drug pricing also weighed on the sector. Biotech stocks and the broader Healthcare sector though are showing signs of rebound in the last few weeks. Indeed, earlier this week, when the S&P 500 dropped, Healthcare was the only sector to finish in the green.
With the U.S. Healthcare sector rebounding, Canadian investors can gain exposure to it by including BMO Equal Weight U.S. Healthcare Hedged Index (ETF) (TSX: ZUH), which tracks the performance of the Dow Jones U.S. Large-Cap Health Care Equal Weight Total Stock Market Index. Over the last five years, the ETF has returned almost 125%. Year-to-date, the ETF is down more than 4%, but this is due to mainly losses suffered at the start of the year. In fact in the last one month, the fund has returned more than 5%.
