A health-care fund with a strong track record could be in a sweet spot for investors who are looking to take some risk off the table, according to Bank of America.
"Since 2006, HCES has been a 'goldilocks' trade for investors looking for high-beta healthcare exposure without extreme volatility," the note said.
The firm's top-rated ETF in the space is the iShares U.S. Medical Devices ETF (IHI) , which helps investors avoid the volatile biotech stocks found in broader health-care sector funds.
IHI 5Y mountain The IHI has averaged a total return of more than 10% over the past five years.
In our view, the trade is far less crowded than broad healthcare for investors looking for defensive exposure," Woodard said.
Persons:
Jared Woodard, HCES, Woodard, — CNBC's Michael Bloom
Organizations:
Bank of America . Investment, Medical Devices, Fisher, Abbott Laboratories, Bank of America
Locations:
U.S