Health-insurer ETFs surge as Obamacare looks set to live another day

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Exchange-traded funds with big exposure to health insurance surged higher late morning Wednesday as odds began to favor Democrat Joe Biden for the White House. Shares of UnitedHealth Group Inc. were up 10% midday, on track for their biggest one-day gain since early March, while shares of Cigna Corp. jumped nearly 14%. Big ETF holders of those stocks, like the iShares U.S. Healthcare Providers ETF and the Health Care Select Sector SPDR Fund gained more than 5%, while the iShares Evolved U.S. Healthcare Staples ETF was up nearly 4%. Republican President Donald Trump spoke frequently about dismantling the Affordable Care Act, without specifying his own healthcare policy ideas. With a Biden victory growing more likely, “the pressure has likely been lifted,” CFRA Chief Investment Strategist Sam Stovall told MarketWatch.
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