The health care sector has been the best performer in the S&P 500 index thus far in 2015 and yet S&P Capital IQ still has a number of favorable stock and ETF recommendations in the sector.
In June, S&P Capital IQ hosted a Health Care Check Up: Prognosis Bullish live-streaming event for clients. During the event, Jeffrey Loo, head of health care equity research, pointed to a number of catalysts including demographics, health care reform, significant drug development and consolidation. He also highlighted the drivers he sees for the pharmaceutical and biotechnology industries, which are the two largest in the sector.
Then Bob Dudley, Select Sector SPDRs Eastern Division Sales Manager, discussed how investors have been increasingly adding fresh money to health care sector and industry ETFs in 2015 and rotating away from the utilities sector. In the first five months of 2015, health care products added $6.7 billion of inflows.
I wrapped up the prepared remarks with a discussion of the S&P Capital IQ ETF philosophy and related research. Among the topics were the differences between market-cap weighted iShares and Market Vectors industry ETFs and the equally weighted SPDR peer products.