Key insights
- Healthcare sector (XLV) is underperforming the S&P 500, raising concerns about its traditionally defensive nature and growth prospects despite demographic tailwinds. This underperformance may continue if the factors causing it persist, potentially leading to further portfolio adjustments away from healthcare stocks.
Hi all - healthcare is a decent part of my portfolio and it has really been underperforming this year (including today). The XLV is down over 8% compared to a 5% gain in the S&P 500. I like healthcare because it’s generally a more stable sector and with the boomers aging, I assumed revenues would continue increasing but this year and even last year, it has seriously underperformed. Do you guys have thoughts on why that is? Nothing jumps out at me off the top of my head. And more importantly, do you think this underperformance will continue? Thanks!