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Active Healthcare Stocks ETF TMED Spiked in 1H

Healthcare stocks have boosted the ETF space in recent weeks. Despite some potential headwinds, the sector and its related thematic ETFs, like active healthcare ETF TMED, have performed. TMED spiked in June specifically, and may offer a potent satellite offering for portfolios combining defensive and disruptive aspects.Key Takeaways: TMED’s active approach has helped it return 18.6% YTD, outperforming both its benchmark index and the ETF Database category’s average. The strategy charges a competitive fee of 44 basis point (bps) to do so. TMED has benefitted from positive news this year for its top holding, LLY, and could help diversify portfolios. The T. Rowe Price Health Care ETF (TMED ) actively invests in healthcare stocks, charging a 44-bps fee. The strategy has returned 18.6% YTD, outperforming the ETF Database Health and Biotech Equities Category average in that time.  TMED looks to outperform its benchmark the S&P Health Care Select Sector Index. That index has returned just 5.7% YTD. The active ETF leans on T. Rowe Price’s fundamental research capabilities to assess a wide pool of global equities. Specifically, the strategy scrutinizes healthcare firms active in subcategories like pharmaceuticals, biotech, and medical devices. Eligible stocks include those classified in the MSCI GICS health care sector. Together, with a bottom up approach, TMED managers invest in growth or value as needed.  See more: T. Rowe Price’s Love Discusses ETFs Hitting 3-Year Mark TMED currently holds Eli Lilly (LLY) as its largest stock. LLY has returned 4.6% over the last month alone. The stock leapt in recent weeks as analysts continued to tout growing demand for weight loss drugs. LLY, of course, is responsible for major GLP-1 products like Mounjaro and Zepbound. Looking ahead, while rates may stay on track this year, cuts could loom in 2027. Combined with the ETF’s active adaptability, it could be a solid addition, with time to ramp up into further performance next year. What’s more, the fund could help add some diversification away from the huge role of tech and AI stocks in many portfolios. Overall, TMED may be one to watch in the second half.   For more news, information, and analysis, visit our Active ETF Content Hub.

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