How the US Healthcare Sector Fared in the First Half of 2018



The US healthcare sector

The US healthcare sector is a vital sector in the US economy as well as for the S&P 500 Index (SPY). The healthcare sector has a 13.71% weight in the S&P 500 Index. The Health Care Select Sector SPDR ETF (XLV), which tracks the performance of the US healthcare sector, rose 0.95% in the first half of 2018.

The XLV ETF rose 1.2% in June 2018. Johnson & Johnson (JNJ), Pfizer (PFE), and UnitedHealth Group (UNH), major holdings of the XLV ETF, rose 1.4%, 0.97%, and 1.6%, respectively, in June.

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The overall weakness in the S&P 500 Index affected the performance of the healthcare care sector in the first half of the year. However, the healthcare sector showed off its defensive nature when other sectors showed huge falls due to the rising US-China trade tension. In June, when major sectors of the S&P 500 Index showed nervousness due to the escalation of US-China trade war tension, the healthcare sector provided a positive return. However, the healthcare sector witnessed some nervousness in the past year due to the delay in healthcare sector reform.

In the next part of this series, we’ll analyze the performance of the dollar index.


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