2024-06-10 03:51:37 ET
Summary
- iShares U.S. Medical Devices ETF has underperformed in recent times.
- The healthcare sector is considered defensive, but medical devices may still be sensitive to economic downturns.
- IHI's present valuation is, in my opinion, fair (unlike at the end of 2021), but there are still concentration risks and little margin of safety in earnings growth numbers.
- Overall, I think IHI is likely to be a sound long-term investment, but it does not seem to offer much alpha for those managing their portfolios more actively.
Introduction
iShares U.S. Medical Devices ETF ( IHI ) is an exchange-traded fund that provides investors with exposure to U.S. companies that manufacture and distribute medical devices, whereas the portfolio is constructed so as to align with its benchmark index, the Dow Jones U.S. Select Medical Equipment Index....
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For further details see:
IHI: Despite Steady Returns At Current Prices, ETF Is Fairly Valued