After setting scintillating paces earlier this thanks to the race to develop a coronavirus vaccine, some health care exchange-traded funds are languishing.
What Happened: It could be a case of election year jitters, frustrations over the vaccine timeline or both, but plenty of health care ETFs, particularly those emphasizing biotechnology and pharmaceuticals equities, are retreating.
Wall Street isn’t taking the declines sitting down. In fact, a spate of recent downgrades by sell-side analysts are adding fuel to the fire.
“The area where analysts do seem to be worried–somewhat surprisingly given the race for a COVID vaccine–is on shares of Health Care stocks, particularly in the Biotech industry, according to the ETF Research Center (ETFRC).
Why It’s Important: ETFRC notes that of the 10 ETFs most afflicted by declines in sell-side ratings, six are health care funds, one of which is the Invesco