Weekly Sector Update - IXJ ($)

This week’s featured sector ETF is IXJ (iShares S&P Global Healthcare). There are several health care ETFs near the top of the rankings. IXJ is the only one that is not in the penalty box. The sector reflects three current market themes:

1. The search for defensive sectors — yield more attractive than bonds with less risk.
2. Changing perceptions of ObamaCare - -which companies can thrive with greater health care access?
3. Changing demographics — increased demand for health care.

If you missed last week’s article, we discussed ITB, here. For today, we will consider IXJ both from the investor and trader perspective.

Investor Take

IXJ has a P/E 16 of and a yield of 2.11%. Some might be surprised to learn that the beta is 1.07 compared to the S&P 500. The sector is not cheap and does not have a great yield. It also is not as defensive as most would think. The overall concentration is typical of most of the broad ETFs we track — about 50% for the top ten.

Here are the top ten holdings:

Trader Take

Felix is a trader, so this perspective is especially relevant. IXJ has had a very nice upswing in the last two months. Take a look at the attractive chart:

Model Output

The model is slightly weaker this week. The strengths are lower and the number of ETFs in the penalty box have increased.

Related posts:

1. Weekly Sector Update - ITB ($)
2. Weekly Sector Update - IYK ($)
3. Weekly Sector Update - Healthcare! ($)
4. Weekly Sector Update - IHI ($)
5. Weekly Sector Update - MOO ($)