IHI: The ETF that remained stable
The iShares US Medical Device ETF (IHI) has remained stable and has outperformed other healthcare and biotechnology ETFs in 2016. With 49 stocks in its portfolio, IHI gives investors exposure to US medical device companies.
Though it had an off day on March 17, 2016, going down by 1%, it has given a YTD (year-to-date) return of -3.5%, which is much better than the returns of other biotechnology and healthcare ETFs. On March 17, 2016, out of 49 stocks, 13 stocks advanced and 36 stocks declined.
The above chart gives an insight into the prices and returns of IHI, the SPDR S&P 500 ETF (SPY), and IHI’s holdings on March 17, 2016.
Best and worst performers
HeartWare (HTWR) was the top performer among IHI holdings on March 17, 2016, rising by 5%. However, on a YTD basis, the stock was down by 40%. It closed at $30.24 and was trading above its 20-day moving average price of $31.50. HeartWare has a book value of $10.83 per share. With its current price, the stock is trading at a PBV (price-to-book value) of ~2.8x. It has a weight of 0.2% in IHI’s portfolio.
NxStage Medical (NXTM) and Intuitive Surgical (ISRG) were the biggest losers, falling by 7.7% and 4.3%, respectively. NxStage Medical closed at $13.69 and was trading below its 20-day moving average price. YTD, the stock has returned -37.5%. With a book value of $2.99 per share, the stock is trading at a PBV of ~4.6x. It carries a weight of ~0.3% in IHI’s portfolio.
Intuitive Surgical closed at $562.35 and was trading below its 20-day moving average price. YTD, the stock has returned ~3%. At the current price, the stock is trading at a 2016 forward PE (price-to-earnings) multiple of ~27.2x and a PBV of ~4.9x. The book value of the stock is $115.49 per share. It has a weight of ~4.5% in IHI’s portfolio.