XBI - BlackRock spotlights healthcare as an opportunity with recession talks in the air
2023-07-26 11:43:28 ET
With markets potentially heading towards a recession, BlackRock highlighted the healthcare sector of the economy as a potential area of opportunity. The financial firm said that over the last seven recessionary periods in the U.S., healthcare outshined the broader market by an average of 10%.
“Slowing economies call for the resilience that healthcare companies can offer, yet the sector remains at a 10% discount to global equity markets compared to an average premium of 3% over the past two decades," BlackRock stated in a recent investor report.
The world's largest asset manager said that the healthcare sector also demonstrates an area that’s relatively resilient during times of high inflation. Pair that with the fact that healthcare stocks are not expensive today when compared to the broader market ( SP500 ) and the segment becomes a compelling opportunity.
“We view healthcare as a long-term, structural growth sector driven by global aging trends. And we see opportunities to invest in a wide variety of companies, ranging from large to small and from stable to innovative.”
For investors that want to learn more about the healthcare sector of the economy they may turn towards a diversified group of exchange traded funds that offer different levels of exposure to the complete healthcare segment. See a grouping of funds below along with their 2023 performance:
- Health Care Select Sector SPDR Fund ( NYSEARCA: XLV ) +0.3% .
- Vanguard Health Care ETF ( NYSEARCA: VHT ) +1.2% .
- iShares Global Healthcare ETF ( IXJ ) +1.8% .
- iShares Biotechnology ETF ( NASDAQ: IBB ) -1.2% .
- SPDR S&P Biotech ETF ( NYSEARCA: XBI ) +1.8% .
- ARK Genomic Revolution ETF ( ARKG ) +33.3% .
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- IMF: Emerging markets will help limit global growth slowdown
- One more Federal Reserve rate hike expected but hawks, doves differ on what's next
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BlackRock spotlights healthcare as an opportunity with recession talks in the air