"Health care reform could mean opportunities for astute investors," says Brandon Clay in his Invest With an Edge.

Here, eyes two biotech ETFs that "should be on everyone's watch list." The advisor notes, "With health care on the front burner in Washington, these biotechnology ETFs may finally be ready to pop."

"Investors in health care should think outside the realm of traditional pharmaceutical companies and health insurers. Those sectors are each facing headwinds that make stock picking difficult.

"In addition, several big pharma companiesare desperate to reload their empty pipelines in the face of increased competition from generic drug makers.

Continue reading Biotech ETFs: Best bets on health care reform

Biotech ETFs: Best bets on health care reform originally appeared on BloggingStocks on Fri, 10 Jul 2009 11:40:00 EST. Please see our terms for use of feeds.

"The current market volatility makes us want to run for shelter, a safe haven," notes Richard Lehmann, editor of The ETF Investor. One such haven he sees is health science, and offers an ETF for the sector.

"Other than Treasury bonds, which have their own risks, cash is certainly the safest. One might think of gold or natural resources as a safe haven, but once economies slow down, demand there will fall as well. Either way these safe havens are likely to be volatile in the near future.

"The health care sector is not as dependent on the overall economy and may be a safe harbor for now. There are a number of ETF's and closed end funds that cover this sector.

"The one we find most compelling is the Blackrock Health Sciences Trust (NYSE: BME) mainly because it captures the value in volatility by writing options on their holdings. The option writing activity moderates price swings and adds income to the fund.

"It invests in healthcare providers, healthcare equipment, pharmaceuticals and biotech companies. The fund is currently trading at $27.80 a -6.84% discount from its net asset value. The yield is 5.53%, which helps as an additional cushion. The expense ratio is high at 1.13%, but is somewhat offset by the -6.84% discount from net asset value."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Blackrock Health Sciences (BME): Safe haven in a 'healthly' ETF originally appeared on BloggingStocks on Thu, 28 Feb 2008 11:46:00 EST. Please see our terms for use of feeds.