Trade Alert – Equity & ETF Model
The health insurers are selling off markedly this morning as the CEO of UNH said, “We’re seeing that more seniors are just more comfortable accessing services for things that they might have pushed off a bit like knees and hips.”
Insurers, like UNH, Humana, and CVS, are trading off, while medical device companies are rising. As a result, we are adjusting our equity healthcare exposure. We sold our position in United Healthcare (UNH) to reduce our exposure to insurers while maintaining our holding in CVS (CVS). We also increased our stake in Abbott Laboratories (ABT) and opened a new position in Stryker Medical (SYK), which is a medical devices company. Stryker will also benefit from advances in AI technology.
In the ETF Model we are selling 2% of the iShares Healthcare Sector ETF (XLV) and swapping into a 2% position of iShares US Medical Devices ETF (IHI).
Our net exposure to healthcare is not changing.
Equity Model
- Sell 100% of United Healthcare (UNH)
- Add 1% of the portfolio to the existing Abbott (ABT) position.
- Initiate a new 2% portfolio position in Stryker Medical (SYK).
ETF Model
- Sell 2% of the portfolio in the iShares Healthcare Sector (ETF)
- Initiate a 2% position in the iShares US Medical Devices ETF (IHI)
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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