XLV’s Healthcare Services Stocks Outperformed Other Subgroups



Healthcare services subgroup outperformed

The Health Care Select Sector SPDR ETF (XLV) offers a range of investment opportunities in different sectors of the biotech industry even though its portfolio contains only 55 stocks. On October 5, 2015, XLV’s healthcare subgroup gained 1.21%, the biotechnology subgroup fell by 0.36%, electronics gained 1.19%, healthcare products rose by 0.32%, pharmaceuticals fell by 0.43%, and the software subgroup was up by 1.27%.

The broad market representative, the SPDR S&P 500 ETF (SPY), rose by 1.78%, whereas XLV gained 0.26% for the day. The healthcare subgroup outperformed XLV but underperformed SPY.

The above graph reflects the performance of different sectors of XLV along with XLV and SPY on October 5, 2015.

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Tenet Healthcare gained 4.57%

Tenet Healthcare (THC) rose by 4.57% on October 5, 2015. The stock gained as it entered into a joint venture with Baptist Health System to form a new healthcare network. As per the press release, “Baptist Health System and Tenet Healthcare Corporation have formed a joint venture to own and operate a network of healthcare facilities serving Birmingham and central Alabama. The joint venture includes all Baptist Health System hospitals, Tenet’s Brookwood Medical Center and each organization’s related businesses. Under the joint venture arrangement, Tenet is the majority partner and will manage the network’s operations.”

Tenet Healthcare has a weight of 0.15% in XLV’s portfolio. The stock closed at $37.98 and was trading below its 20-day, 50-day, and 100-day moving averages. Tenet Healthcare’s RSI (relative strength index) stood at 21, indicating that the stock has moved into the oversold territory.

The other stocks that gained within the healthcare subgroup are Universal Health Services (UHS), Quest Diagnostics (DGX), and HCA Holdings (HCA) with returns of 2.47%, 1.35%, and 1.23%, respectively, on October 5, 2015.


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