The table presented above compares and contrasts the two healthcare ETFs, based on Yahoo! Finance statistics as of the market close on July, 2, 2008.

Despite concerns over the health of the domestic economy along with surging food and energy prices, the healthcare sector has failed to garner investor interest as a safe haven. Most healthcare exchange-traded funds (ETFs) and drug stocks continue to languish near multi-year lows, despite an aging Baby Boomer population and ever-increasing proportion of the gross domestic product (GDP) accounted for by healthcare spending. Last year, total health expenses grew at twice the inflation rate (6.9%), accounting for 16% of the GDP at $2.3 trillion. This growth rate is expected to continue over the next decade to a level of $4.2 trillion in 2016, accounting for 20% of the GDP, based on statistics provided by the National Coalition for …

It was a difficult week for investors, almost regardless of market sector. As we have observed in our last several updates, a general deterioration in market sectors helps the investor get a good feel for the overall market. Last week we wondered whether there was anyplace to “hide”. We noted that the inverse market sectors ETF’s were showing surprising strength.

Markets versus Sectors

Most ETF investors are interested in finding the best sectors. The advantage of considering market ETF’s and their inverses — SPY and SH, DIA and DOG, QQQQ and PSQ — is the ability to compare the overall market to individual sector performance.

Sector concentrations have a higher beta — more risk and more reward. It is unusual for a play on the overall market, long or short, to have more appeal than individual sectors.

Last week’s emergence of the ETF index shorts was quite …

The ETF market is looking crowded in terms of numbers and diversity of funds, and the number of ETF sponsors. However, the market shares are highly concentrated with a steep gradient of fund sizes and sponsor market shares.

As of April (according to score keeping by Vanguard) the top ETF sponsors by asset market share were:

#1 Barclays: 53.0% (iShares & iPathETNs) http://www.ishares.com http://www.ipathetn.com

#2 State Street: 24.8% share (SPDRs) http://www.ssgafunds.com

#3 Vanguard: 8.0% share (Vangurd) http://www.vanguard.com

#4 Invesco: 6.5% share (Power Shares) http://www.invescopowershares.com

#5 ProFunds: 2.8% share (ProShares) http://www.proshares.com

#6 Merrill Lynch: 1.1% share (Holders) http://www.holdrs.com

#7 Rydex: 1.0% share (Rydex Funds & Currency Shares) http://www.rydexfunds.com http://www.currencyshares.com

The top four sponsors have 92+% market share.  The top seven sponsors have 97+% share.  All the rest divide less than 3% between them.

Richard

I have no idea what has gotten into Brazil today as the iShares Brazil (EWZ) is up nearly 9%; that’s the large caps index.. but Gafisa (GFA) is up 14% and since I just added to this Monday in the $38s [Bookkeeping: Adding Gafisa] I am going to cut back a bit here in the $43s. If anyone knows why Brazil is so happy today let me know in comments area; I do have a pretty good idea why Brazil is happy overall. It’s Samba time!

Gafisa is now down to a 1.5% stake (it had appreciated to 2.1%); I will let more go north of $45 if we get there. Otherwise I am content to hold the rest since unlike my other homebuilders it’s not in the United States of Subprime.

Totally unrelated educational moment …