The US Health Care sector, which was the top performer last year, fell abruptly as the prospect of tighter health care legislation pushed down health care stocks. The sector is the worst performer so far in 2019. Health Care recorded the lowest cumulative year-to-date return (of 3.4%) last week among the 11 sectors in the Russell 1000. Health Care posted a year-to-date cumulative active return of -14% against the Russell 1000. In terms of risk, Health Care was the third-least volatile, after Consumer Staples and Real Estate, among the 11 sectors in the Russell 1000. Health Care’s weight in the index dropped below its level of six months ago, and now Health Care’s contribution to benchmark risk is slightly higher that its weight would imply.
See graph from the US Equity Risk Monitor as of 25 April 2019: