Companies (over 50) from the following sectors of the economy
are included in the US Health Care Select Sector Index:
pharmaceuticals (38.32%), biotechnology (21.83%), health
services (18.75%), equipment for the health sector (16.30%),
services and equipment for health research (4.11%), technology
companies in the health sector, including , software, electronics,
· The US health sector is the largest of its kind in the
world with the country top of the list in terms of spending
on medicine throughout the world. According to
Bloomberg, spending on health for the average
American in 2015 was 9,146 USD. The increasing share
of state expenditure on health as part of the country’s
GDP will stimulate a growth in companies’ share price
within this sector. In particular, the Obamacare program
and others will facilitate an increase of citizens into the
system of medical insurance, thereby stimulating a
growth in income for pharmaceutical companies.
According to forecasts from The Peter G. Peterson
Foundation, the share of government expenditure in key
US health programs will gradually rise to 6% of GDP by
· The continued high merger and takeover activity in the
health sector will facilitate a rise in company share prices
within the sector. According to data from the IMAA
(Institute for Mergers, Acquisitions and Alliances), the
number and volume of mergers and takeovers of
pharmaceutical and biotechnology companies continues
to gradually increase: in 2001 there were around 600,
totaling 75 billion USD, in 2013 there were 910 with a
total of 150 billion spent and in 2015 this rose to 1,100
deals totaling 500 billion USD.
Investment period ends: 16/03/2018
Expected yield is calculated according to 90% capital protection and the price of the base asset at expiry, equal to 97 USD.
The ETF (Health Care Select Sector SPDR Fund) share price for The Health Care Select Sector Index has left the Ichimoku cloud upwards and continues to be close to the lower limit of the upward, long-term trend channel. The price has broken upwards through the 50, 100 and 200 daily moving averages. The significant technical levels are 77.16, 72.86, 68.61, 67.26, 64.03 and 60.27.