Which stocks and ETFs are recommended for long investments in the healthcare sector?

Which stocks and ETFs are recommended for long investments in the healthcare sector?

• A. PFE, GILD, MRK, XLK
• B. PFE, GILD, MRK, XLV
• C. MSFT, AAPL, XLK, IBB
• D. AMZN, NVDA, IYT, XLV

Answer: (B)

The selection of PFE (Pfizer), GILD (Gilead Sciences), MRK (Merck), and XLV (Health Care Select Sector SPDR Fund) reflects a solid choice for long-term investments in the healthcare sector. Each of these stocks represents a well-established player in healthcare, providing a mix of biotech, pharmaceutical, and healthcare services, which are essential for a diversified investment strategy in this sector. Pfizer and Merck are major pharmaceutical companies known for their extensive product portfolios, including vaccines and various therapeutic drugs. Gilead Sciences specializes in antiviral drugs, particularly for HIV and hepatitis, showcasing innovation in healthcare solutions. XLV, as an ETF, provides exposure to a broader range of healthcare companies, which can mitigate risk through diversification across different segments such as pharmaceuticals, biotechnology, and healthcare equipment. This combination allows investors to not only benefit from the stability and growth potential inherent in these established companies but also from the added diversification provided by the ETF. The other options include stocks and ETFs that either do not focus primarily on the healthcare sector or represent different sectors such as technology and consumer goods. This makes them less suitable for a long-term investment strategy specifically aimed at healthcare.

The selection of PFE (Pfizer), GILD (Gilead Sciences), MRK (Merck), and XLV (Health Care Select Sector SPDR Fund) reflects a solid choice for long-term investments in the healthcare sector. Each of these stocks represents a well-established player in healthcare, providing a mix of biotech, pharmaceutical, and healthcare services, which are essential for a diversified investment strategy in this sector.

Pfizer and Merck are major pharmaceutical companies known for their extensive product portfolios, including vaccines and various therapeutic drugs. Gilead Sciences specializes in antiviral drugs, particularly for HIV and hepatitis, showcasing innovation in healthcare solutions. XLV, as an ETF, provides exposure to a broader range of healthcare companies, which can mitigate risk through diversification across different segments such as pharmaceuticals, biotechnology, and healthcare equipment.

This combination allows investors to not only benefit from the stability and growth potential inherent in these established companies but also from the added diversification provided by the ETF.

The other options include stocks and ETFs that either do not focus primarily on the healthcare sector or represent different sectors such as technology and consumer goods. This makes them less suitable for a long-term investment strategy specifically aimed at healthcare.