Pfizer’s Acquisition of Hospira Boosts Healthcare ETFS
ETF Trends reported that healthcare ETFs enjoyed some gains on Thursday after Pfizer Inc. (NYSE:PFE) announced that it plans to acquire Hospira Inc. (NYSE:HSP) for $17 billion.
ETF Trends reported that healthcare ETFs enjoyed some gains on Thursday after Pfizer Inc. (NYSE:PFE) announced that it plans to acquire Hospira Inc. (NYSE:HSP) for $17 billion.
As quoted in the market news:
Pfizer is the second-largest holding in the Health Care Select Sector SPDR (NYSEArca: XLV), the largest health care ETF, while Hospira is a smaller holding in the fund. Together, the two stocks entered Thursday with a combined weight of 8% in XLV. The $12.7 billion XLV tracks the S&P Health Care Select Sector Index.
That is the same index the the Direxion Daily Healthcare Bull 3x Shares (NYSEArca: CURE) attempts to deliver three times the daily returns of, so what is good for XLV is even better for CURE. And things have going quite well for CURE.