Healthcare ETF (IYH) Hits New 52-Week High

For investors seeking momentum, iShares U.S. Healthcare ETF IYH is probably on the radar. The fund just hit a 52-week high and has risen 23.24% from its 52-week low of $53.35 per share.

But, are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:

IYH in Focus

The underlying Russell 1000 Health Care RIC 22.5/45 Capped Gross Index measures the performance of the healthcare sector of the U.S. equity market. The product charges 38 bps in annual fees (See: All Health Care ETFs).

Why the Move?

Healthcare has picked up momentum lately, with investors seeking safety amid growing worries about AI overvaluation. The fund has allocated about 14.60% to Eli Lilly LLY, which briefly surpassed the $1 trillion market cap mark on Nov. 21, making it the first healthcare company to break into a club long ruled by tech heavyweights.

Additionally, the increasing adoption of AI in U.S. healthcare continues to provide a meaningful tailwind for the sector.

More Gains Ahead?

Currently, IYH has a Zacks ETF Rank #3 (Hold) with a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 11.59 (as per Barchart.com), which gives cues of a further rally.

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This article originally published on Zacks Investment Research (zacks.com).

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