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ETF Investors Betting Against Reform

By Don Dion

About this article:
The harder that Washington tries to push through reform, the more that targeted sectors such as banking and health care continue to rally. The iShares Dow Jones U.S. Healthcare Providers, which tracks firms such as WellPoint, Aetna and Humana, rallied 1.68% yesterday as President Obama unpacked his bags and set aside a trip to Asia to push through his bill. As the nation's top health insurers have been bullied and blamed, IHF has gained 5.89% year to date. State Street's Financial Select SPDR ETF has also been on a run. XLF, which tracks big banks such as JPMorgan, Bank of America and Goldman Sachs, has rallied more than 10.5% year to date, even as financial reform seems to be the next issue on deck. While betting against Washington's agenda has been profitable so far in 2010, I believe that the tide could turn quickly. If the...

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