- Health care stocks are likely fairly valued based on current earnings growth expectations.
- Nevertheless, they are cyclically well positioned, and VHT offers further diversification benefits for U.S. investors.
- Since health care also conventionally is seen to offer "defensive" benefits too, particularly as business cycles become "longer in the tooth", VHT may offer further safety.
- However, fundamentally, I remain neutral on VHT, as while there could be some cyclical uplift, the fund is likely trading at fair value.
For further details see:
VHT: Health Care Stocks Are Fairly Valued But Likely To March Higher