One Healthcare ETF to Watch in 2020

The Democratic primary got off to a controversial start last week as the nominees faced off in Iowa. The New Hampshire primary is set for this Tuesday. Bernie Sanders has looked strong in early polling.

This is significant for investors, especially those with their eyes on the healthcare sector.

Sanders has vowed to pursue Medicare-for-All if he is elected. He has vowed to confront the private insurance industry, which is causing some anxiety in that sector. The iShares US Healthcare Providers ETF (NYSE:IHF) may be impacted in the event of a Sanders win, so it is an ETF to watch to star this year.

The ETF has been static to start 2020 after rising 22% in 2019. Some of the top holdings in this ETF include Johnson & Johnson, UnitedHealth Group, and Merck & Co. Is there reason for concern as the Democratic nomination process gets underway? Probably not.

Senate Democrats have proven skeptical of the proposal, especially in key battleground states. If Sanders were to pull off a win, he would need to wrangle support from Senators and Congresspeople. That means we are likely to see a compromise in the event of a big legislative push.

The health-care sector is one of the fastest growing in the US. Investors should feel good about continuing to bet on this promising market even as the political noise ramps up in 2020.