3 Health Care ETFs To Buy Now For Growth And Income

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Includes: IYH, VHT, XLV
by: Regarded Solutions

I wrote about these ETFs before the Supreme Court came down with its ruling on the Affordable Care Act. Now that the law has been deemed constitutional, and the entire law stands, it would be prudent to take advantage of the ETFs that offer diversity in this sector.

It is my belief that the ETFs I suggested before will benefit from this law and offer all investors a growth opportunity as well as income.

3 ETFs To Buy Now

Health Care Select Sector SPDR (NYSEARCA:XLV)

Price: $38.18 (as of 7/16)
Dividend Yield: 2.0%

From Yahoo Finance:

Top 10 Holdings (59.24% of Total Assets)
Click to enlarge
Company Symbol % Assets
Johnson & Johnson Common Stock (NYSE:JNJ) 12.27
Pfizer, Inc. Common Stock (NYSE:PFE) 11.80
Merck & Company, Inc. Common St (NYSE:MRK) 8.19
Abbott Laboratories Common Stoc (NYSE:ABT) 5.89
UnitedHealth Group Incorporated (NYSE:UNH) 4.21
Bristol-Myers Squibb Company Co (NYSE:BMY) 4.05
Amgen Inc. (NASDAQ:AMGN) 3.94
Express Scripts Holding Company (NASDAQ:ESRX) 3.14
Eli Lilly and Company Common St (NYSE:LLY) 2.99
Medtronic Inc. Common Stock (NYSE:MDT) 2.76
Click to enlarge
Click to enlarge

Vanguard Health Care ETF (NYSEARCA:VHT)

Price: $69.33 (as of 7/16)
Dividend Yield: 1.60%

From Yahoo! Finance:

Top 10 Holdings (48.76% of Total Assets)
Click to enlarge
Company Symbol % Assets
Johnson & Johnson Common Stock JNJ 10.20
Pfizer, Inc. Common Stock PFE 9.86
Merck & Company, Inc. Common St MRK 6.63
Abbott Laboratories Common Stoc ABT 5.41
UnitedHealth Group Incorporated UNH 3.56
Bristol-Myers Squibb Company Co BMY 3.24
Amgen Inc. AMGN 3.06
Eli Lilly and Company Common St LLY 2.38
Medtronic Inc. Common Stock MDT 2.34
Gilead Sciences, Inc. GILD 2.08
Click to enlarge
Click to enlarge

iShares Dow Jones US Healthcare (NYSEARCA:IYH)

Price: $80.02 (as of 7/16)
Dividend Yield: 1.60%

From Yahoo! Finance:

Top 10 Holdings (55.69% of Total Assets)
Click to enlarge
Company Symbol % Assets
Johnson & Johnson Common Stock JNJ 11.19
Pfizer, Inc. Common Stock PFE 11.02
Merck & Company, Inc. Common St MRK 7.57
Abbott Laboratories Common Stoc ABT 6.30
Amgen Inc. AMGN 3.99
UnitedHealth Group Incorporated UNH 3.93
Bristol-Myers Squibb Company Co BMY 3.75
Express Scripts Holding Company ESRX 2.74
Eli Lilly and Company Common St LLY 2.64
Medtronic Inc. Common Stock MDT 2.56
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Click to enlarge

These are the "best of breed" ETFs in this sector, in my opinion. As you can see, they are diversified across the board in the biggest and best brand name stocks on the planet, in the healthcare industry.

With the Supreme Court ruling, there stands to be far more emphasis placed in this sector. There will be tens of millions more insured. There will be a full court press on research and development in the pharmaceutical industry, which will be the easiest way to reduce the high cost of procedural care.

Insurance companies now stand to gain with more customers, hospitals will get paid more readily, and as the costs of healthcare overall is forced down, these companies will react to maintain strong balance sheets and grow internally as well as externally.

My Opinion

We can all gain by owning specific stocks in this sector as well as broadened exposure to a wider array of stocks via these ETFs. I would take a good look at these ETFs to see if any of them or all of them have room within your portfolio.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.