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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 (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 (XBI), Powershares Dynamic Biotech and Genome (PBE), Health Care SPDR (XLV), S&P Global Healthcare Sector Index Fund (IXJ), iShares NASDAQ Biotechnology Index (IBB), iShares Dow Jones US Healthcare (IYH) and Powershares Dynamic Pharmaceuticals (PJP). Of these ETFs, XBI and XLV have the lowest expense ratios.
Source: Zimmer Gets FDA Approval For Its Ceramic Hip Replacement Product