Investing in the U.S. Health Care Sector with the Health Care Select Sector SPDR Fund (XLV)
Denver, CO
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December 12, 2023 07:00 AM Eastern Standard Time
The health care industry is an ever-present sector in the investment landscape, offering steady growth and resilience even during challenging times, thanks to factors like aging demographics, which drive the performance of companies in this sector. For investors looking to gain exposure to this robust market, the Health Care Select Sector SPDR Fund (XLV) presents a cost-effective and efficient option.
XLV provides broad exposure to core companies within the U.S. health care industry by tracking health care stocks from the S&P 500 Index, weighted by market cap. Top holdings* include UnitedHealth Group (10.54%), Lilly (9.70%), Johnson & Johnson (7.66%), Merck (5.35%), AbbVie (5.17%), and Thermo Fisher (3.94%), representing more than 40% of the fund.
About the Health Care Select Sector SPDR Fund (XLV)
Launched in 1998, XLV is the oldest health care ETF in the market. With over $37 billion in assets under management and a low total expense ratio of 0.10%**, this fund offers easy access to major players in the pharmaceuticals, health care equipment and supplies, health care providers and services, biotechnology, life sciences tools and services, and health care technology industries.
The health care industry is one of the largest in the U.S. economy, with demand remaining consistent due to the essential nature of its services. This ETF capitalizes on that demand, providing focused exposure to leading health care names. XLV has proven to be a useful tool for investors seeking strategic or tactical positions in the health care sector.
Moreover, the transparency of XLV is one of its main advantages. Investors can follow daily portfolio holdings and weightings at sectorspdrs.com, ensuring they are always informed about their investments.
As consumer spending on health care continues to rise year over year, XLV represents a valuable opportunity to capture this steady growth. The Health Care Select Sector SPDR Fund (XLV) allows easy access to the largest companies in the health care industry. As an investment vehicle, it offers a diversified methodology that can fit portfolios and investment strategies in a broad market manner, making it a practical tool for investors of all sizes.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
*Holdings, Weightings & Assets as of 11/30/23 subject to change
**Ordinary brokerage fees apply
DISCLOSURES
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Media Contact:
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: dan.dolan@sectorspdrs.com
Website: https://www.sectorspdrs.com/
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
SEL007096 EXP 1/31/24
Contact Details
Dan Dolan
+1 203-935-8103
Company Website
