State Street SPDR S&P Health Care Services ETF

XHS

Market cap $93M

After a 50%+ run from lows last April through highs in mid-January, the Biotech group has been trending sideways over the last few months. Biotech hasn't garnered much attention lately, with all the coverage of the Iran War and the AI Doom trade that's been taking down software stocks even as AI infrastructure stocks continue to surge.

Healthcare and biotech led last week's winners, with EPHE, BBC, HELX, XHS and SURI topping ETF gains as markets slid on AI worries and Fed uncertainty.

The healthcare sector has experienced one of its most significant de-ratings in 35 years, with valuations now at a 30% discount to the broader market. Healthcare trades at historical valuation discounts across multiple metrics.

Outlook for pharma sector as Trump pushes for regulatory changes. The impact of tariffs on drugmakers.

These sectors are expected to record strong growth in the ongoing first-quarter earnings reporting cycle.

Investors cooled to the healthcare sector in 2024, which dramatically trailed global and US equity markets for the year. any investors are now asking: how will the policy changes under a new US administration affect healthcare companies?

Sometimes it feels like it's Nvidia's world and we all just live in it. Why bother with anything else?