The Healthcare Sector Index $XLV - Worth Watching
SPDR Select Sector Fund – Healthcare Index
XLV
The chart speaks for itself, we have our breakout levels and our break down levels. We enter on a breakout and set a stop 5% under that support and we exit and or short if we fall under the two underside support levels.
Below I outline some reasons why the healthcare sector is worth paying attention too.
The healthcare industry is worth $808 billion in the United States as of 2021. 65% of the industry’s revenue comes from patient care. The global healthcare industry is worth $12 trillion.
In the U.S National health expenditures are projected to grow 5.4 percent, on average, over the course of 2023–31 and to account for roughly 20 percent of the economy by the end of that period. The insured share of the population is anticipated to exceed 92 percent through 2023 (figures pending), in part as a result of record-high Medicaid enrolment, and then decline toward 90 percent as coverage requirements related to the COVID-19 public health emergency expire.
The growth of the health-care sector is evident in employment data as well. In 1990, about 8 million Americans worked in health care; that figure has since doubled to 16 million. That’s the largest single employment segment in our economy.
In addition to the above, the west in general is an aging populace that is living longer. We will need these services more than we need staples during a recession. I believe this index can help us gauge the healthcare sector and what direction it will go next. We can watch the levels outlines and make a play if we wish. We have a hard upper boundary and lower boundary on a parallel channel on the chart. You know what to do when we breach any of these levels.
Outlined on the chart
XLV fund provides exposure to companies in
pharmaceuticals, health care equipment and supplies,
health care providers and services, biotechnology, life
sciences tools and services, and health care
technology industries. XLV is the oldest in the
segment, as such it is used widely for strategic or
tactical positions. Since XLV is both cap weighted
and fishes only from the S&P 500, it tilts heavily
toward mega-caps. For focused exposure to
leading health care names, XLV is tough to beat.
Top Five Holdings
UnitedHealth Group Inc
UNH
9.63%
Eli Lilly and Co
LLY
9.19%
Johnson & Johnson
JNJ
7.46%
Merck & Co
MRK
5.46%
AbbVie Inc 5.41%
Stay Healthy and Nimble Folks
PUKA
XLV
The chart speaks for itself, we have our breakout levels and our break down levels. We enter on a breakout and set a stop 5% under that support and we exit and or short if we fall under the two underside support levels.
Below I outline some reasons why the healthcare sector is worth paying attention too.
The healthcare industry is worth $808 billion in the United States as of 2021. 65% of the industry’s revenue comes from patient care. The global healthcare industry is worth $12 trillion.
In the U.S National health expenditures are projected to grow 5.4 percent, on average, over the course of 2023–31 and to account for roughly 20 percent of the economy by the end of that period. The insured share of the population is anticipated to exceed 92 percent through 2023 (figures pending), in part as a result of record-high Medicaid enrolment, and then decline toward 90 percent as coverage requirements related to the COVID-19 public health emergency expire.
The growth of the health-care sector is evident in employment data as well. In 1990, about 8 million Americans worked in health care; that figure has since doubled to 16 million. That’s the largest single employment segment in our economy.
In addition to the above, the west in general is an aging populace that is living longer. We will need these services more than we need staples during a recession. I believe this index can help us gauge the healthcare sector and what direction it will go next. We can watch the levels outlines and make a play if we wish. We have a hard upper boundary and lower boundary on a parallel channel on the chart. You know what to do when we breach any of these levels.
Outlined on the chart
XLV fund provides exposure to companies in
pharmaceuticals, health care equipment and supplies,
health care providers and services, biotechnology, life
sciences tools and services, and health care
technology industries. XLV is the oldest in the
segment, as such it is used widely for strategic or
tactical positions. Since XLV is both cap weighted
and fishes only from the S&P 500, it tilts heavily
toward mega-caps. For focused exposure to
leading health care names, XLV is tough to beat.
Top Five Holdings
UnitedHealth Group Inc
UNH
9.63% Eli Lilly and Co
LLY
9.19% Johnson & Johnson
JNJ
7.46% Merck & Co
MRK
5.46% AbbVie Inc 5.41%
Stay Healthy and Nimble Folks
PUKA
