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Healthcare ETF momentum lifts leveraged UnitedHealth 2X product

The healthcare sector ETF gained 12.4% over the 90 days through July 7, while UnitedHealth shares rose 52% in the same span.

Reported · Written up by our desk · ETFs

ETF Trends says healthcare stocks are climbing in what it describes as a relatively quiet move higher, with the largest basic healthcare ETF jumping 12.4% over the 90 days ending July 7.

The outlet points to UnitedHealth Group Inc. as a key driver, noting the Dow component gained 52% over that same period, a backdrop that may help traders using Direxion’s Direxion Daily UNH Bull 2X ETF, UNHU.

UNHU, which launched in March, targets 200% of UnitedHealth’s daily performance, and ETF Trends links the setup to the underlying stock’s technical strength, citing indicators including a MACD buy signal and an ADX reading consistent with persistent buying pressure.

ETF Trends also argues UnitedHealth has longer term fundamentals traders watch for, highlighting cost advantages and network effects in medical insurance, and adding that its pharmacy benefit manager unit, Optum Rx, benefits from scale in processing pharmaceutical claims. According to the article, the top three PBMs handle about 80% of US pharmaceutical claims.

Latest closeDow Jones 52,348.09 ▼1.1%

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