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Analyzing Abbott Laboratories and ETFs

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Aug. 11 2015, Updated 1:05 p.m. ET

ETFs

ETFs are the securities that are publicly traded on stock markets. However, they track an index, a commodity, or a basket of assets. ETFs are designed for investors who don’t have the capacity to hold many stocks, but are interested in investment diversification within a sector or industry.

The above chart compares ETFs that hold Abbott Laboratories (ABT) as a percentage of their total assets. The total return for Abbott’s share price on the NYSE from July 2010 to June 2015 has been ~13.60%. This is lower than a few of the ETFs focused on the pharmaceutical segment.

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XLV

The Health Care Select Sector SPDR ETF (XLV) has been operational since 1998. Its net assets are $14.5 billion. Abbott forms about 2.30% of the fund’s total assets. Its total return over last five years was over 20.60%.

PJP

The PowerShares Dynamic Pharmaceuticals ETF (PJP) has been operational since 2005. Its net assets are $2 billion. Abbott forms 2.90% of the fund’s total assets. Its total return over last five years was more than 34.60%.

PPH

The VanEck Vectors Pharmaceutical ETF (PPH) has been operational since 2011. Its net assets are $390 million. Abbott forms 4.75% of the fund’s total assets. The fund also holds companies like Johnson & Johnson (JNJ), Novartis AG (NVS), and Pfizer (PFE). Its total return over the last three years was more than 22.60%.

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