iShares U.S. Healthcare Providers ETFIHF is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 49.25% from its 52-week low price of $40.85 per share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
IHF in Focus
The underlying Dow Jones U.S. Select HealthCare Providers Index measures the performance of the health care providers sub-sector of the U.S. equity market. The product charges 0.37% in annual fees (see: all Health Care ETFs here).
Why the Move?
The healthcare sector has been an area to watch as the sector is drawing investor attention, supported by improving earnings prospects, encouraging clinical developments and appealing valuations.
At the same time, rising geopolitical tensions and economic uncertainty are strengthening the sector's defensive appeal. The healthcare sector is non-cyclical, providing a defensive tilt to the portfolio amid market turmoil. Given its relative resilience in low-growth and uncertain environments, the sector often attracts increased interest as investors look to rotate into defensive areas.
More Gains Ahead?
Currently, IHF has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 27.41 (per Barchart.com), which hints at a rally.
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iShares U.S. Healthcare Providers ETF (IHF): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
