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March 23, 2010 at 08:00 PM
Many investors in healthcare companies breathed a bit easier as the final details of the historic healthcare legislation emerged over the weekend. According to ETF Database (ETF db), www.etfdb.com/
investors became convinced that the surge in paying customers would outweigh any damage done by new fees and more stringent regulations. They focused on hospitals and drug makers, most of which supported the final regulation, as beneficiaries of health care reform. At the same time, health insurance providers appear to have most to lose from its passage.
ETF db looked at the prospects for three subsectors of the healthcare industry through the prism of three funds available to investors:
iShares Dow Jones U.S. Healthcare Providers Index Fund (IHF): This ETF’s benchmark includes operators of health maintenance companies, hospitals, clinics, nursing homes and rehabilitation centers. Some investors think that the ability of health care providers to bill the government for patient treatment could mean healthier profits, according to ETF db. IHF enjoyed strong gains late last week, and surged in trading early Monday.
