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Excerpt from our One Page Annotated Wall Street Journal Summary (get it e-mailed to you every morning by signing up here):

Zimmer Gets FDA Approval For Ceramic Hip Replacements

  • Summary: Orthopedic products producer Zimmer Holdings (NYSE:ZMH) received regulatory approval to market its Trilogy AB ceramic hip replacement system. The stock rose 1.3% on the news.
  • Comment on related stocks/ETFs: Fund manager Eddy Elfenbein says that 'if any business could be described as the perfect business, it might be medical devices.' It seems that narrow healthcare funds proposed by Ferghana-Wellspring may well fulfill a market need for sub-sector exposure to areas such as orthopedics or cardiac devices (stents and pacemakers). Several ETFs target this sector including SPDR Biotech (NYSEARCA:XBI), Powershares Dynamic Biotech and Genome (NYSEARCA:PBE), Health Care SPDR (NYSEARCA:XLV), S&P Global Healthcare Sector Index Fund (NYSEARCA:IXJ), iShares NASDAQ Biotechnology Index (NASDAQ:IBB), iShares Dow Jones US Healthcare (NYSEARCA:IYH) and Powershares Dynamic Pharmaceuticals (NYSEARCA:PJP). Of these ETFs, XBI and XLV have the lowest expense ratios.
Source: Zimmer Gets FDA Approval For Its Ceramic Hip Replacement Product