ETF of the Day - Health Care ETF XLV

As Obamacare gets to make its way to the Supreme Court the health care stocks are not blinking an eye on they way to new highs. The SPDR Health Care ETF ($XLV) is up another 1.4% this morning and is now trading at a 5-year high.

The ETF is composed of pharmaceuticals (50%), health care providers (19%), medical equipment (16%), biotech (11%), life sciences (4%). The top 4 stocks are all drug companies ($JNJ, $PFE, $MRK, $ABT) that have been doing very well in both a risk-on and risk-off market environment.

The eventual ruling on whether Obamacare is constitutional will likely have some impact on the ETF, but any decision will have its pros and cons on the sector. What I like about $XLV is the exposure to pharmaceuticals, which are poised to continue moving higher, as well as the 2% dividend yield. Throw in the bullish chart and $XLV looks like a winner.